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Positive political cue pushes benchmark index up



KATHMANDU: Expectations of a positive political development brought back some cheer to the capital market this week — August 18 to 21 — after a couple of sluggish weeks. The benchmark index increased by 11.95 points — that is 2.14 per cent — this week.

The political discourse between the agitating Mohan Baidya-led CPN-Maoist‚ government and four major political parties regarding CA elections on November 11 infused hope of a smooth political situation in the coming months. Though the round table discussion failed to come to a conclusion on Thursday‚ the market that was open for three days till Tuesday ended on a high note.

On Sunday afternoon‚ the market that had opened at 536.45 points reached 540.54 points by the time the market closed.

The index then steadily climbed in the next two trading days and by the end of the week it reached 548.40 points.

Despite only three days of trading‚ transaction volume remained substantial this week. The transaction volume that stood at Rs 725.2 million last week declined to Rs 634.5 million this week. It is only a 12.5 per cent decline as compared to the previous week.

There were 6074 transactions recorded for 2.7 million unit shares of 127 companies. Last week‚ 2.07 million units of shares were traded in 9177 transactions.

Share trading of blue chip stocks belonging to the class ‘A’ group comprised of 42.78 per cent of total trading‚ amounting to Rs 271.4 million. The sensitive index that shows the performance of class ‘A’ stocks increased by 3.51 points. Likewise‚ the float index that measures the performance of shares actually traded also went up by 0.85 points to 38.5 points.

This week‚ except for manufacturing that went down by 2.69 points‚ the rest of the subgroups registered gains.

Insurance gained 44.45 points as Nepal Life Insurance gained Rs 117 per unit‚ National Life Insurance gained Rs 61‚ and Shikhar Insurance registered a gain of Rs 35 among others. Likewise‚ Soaltee Hotel’s gain of Rs 16 per unit pushed the hotels subgroup up by 25.63 points.

Hydropower gained 8.44 points though the share price of Butwal Power Company went down by Rs 37. However‚ Chilime Hydropower’s price increased by Rs 26 per unit and Arun Valley recorded a gain of Rs 19 per unit.

Nepal Telecom that gained Rs 11 per unit share pushed the others subgroup up by 17.62 points.

Banking gained 12.2 points as share prices of major banks looked up. Development banks and finance companies also climbed up by 5.91 points and 0.92 points‚ respectively.

This week also‚ Global IME Bank topped the charts in terms of transaction volume and shares traded with trading of 709‚006 units of shares worth Rs 90.75 million. Commerz and Trust Bank Nepal was the forerunner in the number of transactions with 283 transactions.

The top five companies this week in terms of transaction volume were Global IME Bank (Rs 90.75 million)‚ National Life Insurance Company (Rs 38.75 million)‚ Chilime Hydropower Company (Rs 25.84 million)‚ Lumbini Bank (Rs 23.98 million)‚ and Asian Life Insurance Company (Rs 23.44 million).

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