Canara Bank Stocks Likely To Benefit MF Scheme

Share prices of Canara Bank went up by 2.35% to Rs. 291.70 reported at BSE at 10.26 a.m. on 30 January 2008 against previous day close of Rs. 285.00.

The rising share prices may have positive impact on NAV of mutual fund schemes, which holds their stake in the bank. Kotak PSU Bank ETF is likely to gain as it has the highest percentage hold of the stocks of the bank compared to its peer groups who have invested in the stocks of the bank. Kotak PSU Bank ETF was holding 3.65% of its total portfolio size invested in the stocks of the bank as on 31 December 2007. The scheme holds 83196 units of the bank in December 2007 compared to its peer groups who have invested in the stocks of the bank.

It is followed by PSU Bank BeES with 4.80 lakh units (3.64% of its portfolio), Stan Chart Fixed Maturity Arbitrage – Series I - A (G) with 70272 units holding (3.13%) as on December 2007.

Two mutual fund schemes have completely exited from Canara Bank in December 2007. Among them, DBS Chola Infrastructure Fund (G) was holding 40018 units on 30 November 2007, has sold all its shares as on 31 December 2007 and thus less likely to gain. DBS Chola Contra Fund (G) was holding 10020 units on 30 November 2007, has sold all its shares as on 31 December 2007 and thus less likely to benefit.