IEX: Strong August Volumes, But Stock Ends in Red

Indian Energy Exchange (

) witnessed strong growth in trading volumes during August, according to its latest monthly business update. However, despite the positive operational numbers, the stock’s initial gains failed to sustain. IEX shares surged as much as 2% during the session after the update was released, but the entire gain was subsequently erased. The stock finally closed marginally lower by 0.2%. On a year-on-year basis, electricity traded volume increased 20.2% to 13.94 billion units (BU). Real-time electricity market volume also grew 10.6% to 5.6 BU. Meanwhile, the Day-Ahead, Contingency and Term-Ahead Market segments recorded a sharp 111.3% year-on-year jump in traded volume to 1,765 million units (MU). Despite the healthy volume growth, the stock’s weak price action remains notable. On a weekly basis, IEX shares have now closed lower for the fifth consecutive week, indicating continued selling pressure and cautious investor sentiment despite improving business volumes. Disclaimer: Investments in securities are subject to market risk. This is for informational purposes only. Investors must verify information before investing and consider their financial position & risk profile.