Selan Exploration tanks over 2%

Selan Exploration, on 20th May had a Board meeting and it announced that they will be meeting again on 26th of May to consider buy back of shares. This was great news for the market and the stock rallied upwards till the 25th of May. On 25th of May, after market closure, the company announced that it was rescheduling its Board meeting to 3rd of June. The reason given was “in order to carefully evaluate the financial implications, if any, on the company of recent GST Announcements.”

And on 3rd June, the company announced that it has decided to postpone the decision to buy back of shares. The reasons cited were many – successful implementation of the GST, decision of OPEC which could have a positive impact on the company and China’s “one belt one road” initiative which will increase global demand. The company has said that all this could have a positive impact on the earnings of in coming months and thus decided to defer the buy back.

The market has simply not bought this argument. Any such postponements are always eyed with a lot of suspicion and the traders get wary. The stock has gone down over 2% at Rs.171 levels. The stock’s 52-week low is at Rs.154.20 and high at Rs.231.10.