Kingfisher shares fly 20% despite wider loss

Kingfisher Airlines shares have risen 20 percent, that too despite the company reporting a wider loss on Saturday.

Now that Kingfisher shares have fallen from grace to become a penny stock officially, the move should not be a surprise.

Such movements are typical of a penny stock. Wild fluctuations in the prices are going to be the order of the day for Kingfisher.

Over the last one month or so, Kingfisher Airlines shares have been trading below par.

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With the government ruling out any bailout to the company, Chairman Vijay Mallya has been running from pillar to post to get funds to keep the airline floating.

He, however, has managed to keep his other businesses by and large insulated from the ills of the aviation business.

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Alex Mathews, Head of Research, Geojit BNP Paribas Financial Services,on Saturday told Firstpost the stock had factored in all negative news and that a sharper decline from the current levels is unlikely.

"Some contrarians may even enter the stock at these levels, expecting the government to allow foreign direct investment in airlines," he said.