Nepal | September 28, 2020

Benchmark index drops 3.69 per cent

Himalayan News Service
Share Now:

Benchmark index

Kathmandu, November 12

The Nepal Stock Exchange (Nepse) index plunged by 65.04 points or 3.69 per cent to 1,697.17 points in the trading week of November 7 to 10 as liquidity tightened in the domestic market and interest rates of banks started going up.

“If you look at the general trend, interest rates of banks is inversely related to the share market, meaning when one goes up, the other comes down,” explained Shreejesh Ghimire, CEO of NMB Capital.

After opening for only one day after the Tihar holidays in the previous week, the secondary market had remained closed on Sunday as the country observed Chhath.

On Monday, the benchmark index was at 1,762.21 points when the secondary market opened for trading. It had shed 13.09 points by the day’s closing. The local bourse was southward bound for most part of the week, as Nepse dropped by 24.63 points to 1,724.49 points on Tuesday and declined by 27.63 points to retreat below the psychological level of 1,700 points — a two-and-a-half month low — on Wednesday.  The secondary market, however, managed to end the week on a positive note as Nepse index inched up 0.31 point to settle at 1,697.17 points.

According to Bachchu Ram Rimal, general secretary of  Nepal Investors Forum, Nepse is also under pressure owing to issuance of  rights shares as well as initial public offerings. Stating the domestic share market has relatively matured in the recent years as share investors have also become more aware Rimal opined it is unlikely the secondary market will witness any massive volatility in the days to come.

“Nepse index will likely hover around the current level until mid-January,” he said.

Altogether, 4.07 million shares of 146 companies that amounted to Rs 2.84 billion changed hands through 18,317 transactions during the review period.

The sensitive index, which gauges the performance of class ‘A’ stocks, dropped by 14.65 points or 3.84 per cent to 367.02 points. Similarly, float index that measures the performance of shares actually traded also fell by 4.99 points or 3.78 per cent to 126.84 points.

Apart from trading, which remained stationery at 202.79 points, all the subgroups recorded losses during the week.

Hydropower saw the biggest plunge of 106.99 points or 4.57 per cent to 2,233.42 points. Chilime’s share value went down by 2.33 per cent to Rs 1,213, Sanima Mai’s slid by 4.15 per cent to Rs 924 and Api’s slumped by 6.48 per cent to Rs 577, among others.

Insurance subgroup took a dive of 374.2 points or 4.1 per cent to 8,761.49 points. This was on the back of share price of insurance companies like Nepal Life falling 4.4 per cent to Rs 1,195 and National Life down 3.64 per cent to Rs 3,180.

Banking sub-index took a beating of 67.55 points or 4.07 per cent to 1,592.43 points. Shareholders of Standard Chartered saw the value of their scrips drop by 7.33 per cent to Rs 3,225, while Everest lost 3.3 per cent to Rs 3,544.

Development banks was down 64.26 points or 3.46 per cent to 1,792.92 points. Chhimek dropped 3.04 per cent to Rs 2,040, Swabhalamban took a dive of 6.76 per cent to Rs 2,400 and Nagbeli shed 2.16 per cent to Rs 4,520.

Hotels descended by 65.68 points or 2.88 per cent to 2,216.3 points. Soaltee fell by 3.02 per cent to Rs 418, Taragaon was down 5.66 per cent to Rs 250 and Oriental dipped 1.72 per cent to Rs 515.

Manufacturing dropped by 63.05 points or 2.73 per cent to 2,245.78 points, weighed down by Unilever Nepal’s share price down 3.93 per cent to Rs 29,655.

Whereas finance fell by 19.27 points or 2.35 per cent to 798.91 points, others managed to limit its loss to 5.49 points or 0.73 per cent to 748.78 points.

Meanwhile, Civil Bank was the forerunner in all three categories — weekly turnover, trading volume and number of transactions — with 584,000 of its scrips worth Rs 192.73 million changing hands through 1,749 transactions.

The other listed companies to make to the list of top five in terms or turnover were Muktinath Bikas Bank with Rs 169.48 million, Bank of Kathmandu Lumbini with Rs 144.71 million, Everest Bank with Rs 139.39 million and Neco Insurance with Rs 90.27 million.


A version of this article appears in print on November 13, 2016 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Students demand justice for Bajhang rape victim in Kathmandu

KATHMANDU, SEPTEMBER 26 Students take to the streets on Saturday demanding justice for a 12-year-old girl whose dead body was found in a temple in Bajhang district on Thursday night. The minor was raped before being killed by the culprit/s. As per local police, investigation into the case in unde Read More...

United earn dramatic win at Brighton with late Fernandes penalty

BRIGHTON: Manchester United beat Brighton & Hove Albion 3-2 away in the Premier League on Saturday after an incredible finale in which Bruno Fernandes struck the winning goal from the penalty spot in the 100th minute of the game. Fernandes's winner, which came after referee Chris Ka Read More...

Chelsea recover from three goals down to draw at West Brom

Chelsea striker Tammy Abraham struck a 93rd-minute equaliser as they battled back from three goals down to draw 3-3 at West Bromwich Albion in their Premier League clash on Saturday. An error by Marcos Alonso led to Callum Robinson opening the scoring for West Brom in the fourth minute and t Read More...

A team of women of Police march past in a programme organised to mark the Constitution day at Nepal Army pavilion in Tundikhel, Kathmandu, on Wednesday, September 19, 2018. Photo: Skanda Gautam/THT

Province 2 threatens to knock Supreme Court door

KATHMANDU, SEPTEMBER 26 Months after the two bills related to adjustment of Nepal Police and Provincial Police were authenticated, provincial governments have not been able to take control of police. As a result, Province 2 government has sent an angry letter to the federal home ministry asking i Read More...

Local levels to resume schools from today in Siraha district

SIRAHA, SEPTEMBER 26 Community schools in Laxmipur Patari Rural Municipality and Mirchaiya Municipality of Siraha, that have remained closed for the past six months are likely to open from tomorrow. Education sections of both the local bodies, by issuing separate notices, decided to open s Read More...

Three persons including campus chief absconding

DHULIKHEL, SEPTEMBER 26 Three persons, including campus chief, have been absconding ever since police issued an arrest warrant against them in Kavre’s Banepa. A fraud charge was filed against three people including Kavre Multiple Campus Chief KJ Baidar in Kavre’s Banepa Municipality, with Read More...

Traffic police expedite monitoring of public vehicles

KATHMANDU, SEPTEMBER 26 Traffic police have expedited inspection and monitoring of public vehicles in Kathmandu valley to ensure that they follow health guidelines and other requirements specified by the government to prevent and control COVID-19. Senior Superintendent of Police Bhim Prasad Dh Read More...

Food, medicines provided to returnees from India

DHANGADI, SEPTEMBER 26 Dhangadi sub-metropolis has been providing free food and health facilities for Nepalis returning from India at border entry point, in Dhangadi. Deputy Mayor Sushila Mishra Bhatta of the sub-metropolis said food and water were being offered to the returnees ever since the Read More...