Seatrium surges on re-rating, buybacks and short covering

Senior Columnist Shares of offshore marine engineering company Seatrium have risen sharply in recent days from a combination of short covering, institutional buying and share buybacks.

- Ven Sreenivasan

The counter surged to an intraday high of $1.61 on Sept 3 before closing 1.3 per cent higher at $1.57.

The stock closed at $1.45 on Aug 29, before climbing 2 per cent on Aug 30 and 4.7 per cent on Sept 2.

It has risen more than 8 per cent in just three trading sessions.

Several analysts and brokers attributed the sharp pickup to short covering, as traders who had shorted the stock bought back the shares to close out their positions.

The counter saw a sharp selldown just after it announced its first halfyear results on Aug 2.

The uptick also comes as the company started its share buyback programme over the past few days.

Earlier in 2024, the company obtained shareholder approval to buy back $100 million worth of shares.