Benchmark index rebounds by 4.31pc

Kathmandu, September 3

The recovery seen in the domestic share market towards the end of the previous trading week stretched into the week of August 28 to September 1, with Nepal Stock Exchange (Nepse) index clocking a weekly gain of 74.56 points or 4.31 per cent to close above 1,800-point threshold.

Beginning the trading week at 1730.62 points on Sunday, Nepse had gained 17.61 points by the day’s closing. The benchmark index was northbound throughout the week. The local bourse advanced by 18.31 points on Monday, 21.54 points on Tuesday, 9.37 points on Wednesday and 7.73 points on Thursday to rest at nearly a month-high of 1,805.18 points.

Nepse index had been unable to close above the 1,800-point mark after retreating below the threshold on August 4.

Altogether 9.71 million shares of 157 companies worth Rs 6.91 billion were traded through 33,932 transactions during the review period. The traded amount was a staggering 101.04 per cent higher than the preceding week when 19,954 transactions of 4.78 million scrips of 156 firms that amounted to Rs 3.45 billion had been undertaken. It has to be noted, though, that the country’s sole secondary market had remained open for only four days in the past week due to a public holiday on August 25.

The sensitive index, which gauges the performance of class ‘A’ stocks, rose by 17.23 points or 4.6 per cent to 391.48 points. Similarly, float index that measures the performance of shares actually traded also inclined by 6.04 points or 4.7 per cent to 134.4 points.

Among the subgroups, trading — like in the previous weeks — remained stationary at 202.79 points. Apart from hotels and hydropower, all the subgroups witnessed gains during the review period.

Manufacturing led the pack of gainers and recouped previous week’s dive of 4.09 per cent by jumping 160.52 points or 6.6 per cent to 2,591.71 points. Unilever Nepal’s share value went up by Rs 1,335 to Rs 34,450 and that of Bottlers Nepal (Tarai) by Rs 1,338 to Rs 6,520.

It was the banking subgroup’s gain of 92.76 points or 5.68 per cent to 1,724.71 points, however, that led to the strong rebound of the benchmark index. The banking subgroup has the highest weightage on the country’s only share market. The impressive climb of the sub-index was owing to share price of commercial banks like Standard Chartered going up by Rs 230 to Rs 3,750, Everest up Rs 166 to Rs 3,406 and Himalayan up Rs 73 to Rs 1,648.

Development banks trailed close behind, with the sub-index rising by 86.31 points or 4.8 per cent to 1,882.21 points. Nagbeli soared by Rs 243 to Rs 4,399, Sana Kisan rose by Rs 61 to Rs 1,985, among others.

Finance managed to salvage some of the loss of the previous week as the subgroup went up by 31.57 points or 3.86 per cent to 849.01 points. Stock price of Citizen Investment Trust rose by Rs 279 to Rs 4,899 and United Finance by Rs 33 to Rs 465.

Adding to the preceding week’s gain of 2.55 per cent, insurance subgroup ascended by 230.1 points or 2.67 per cent to 8,844.52 points. Prime Life went up by Rs 90 to Rs 2,320 and National Life rose by Rs 21 to Rs 3,300.

Others subgroup edged up by 8.1 points or 1.04 per cent to 787.53 points. Even as share value of Hydroelectricity Investment and Development Company fell by Rs 10 to Rs 325, the sub-index was buoyed by Nepal Telecom’s rising by Rs 16 to Rs 691.

Conversely, hotels slumped by 56.53 points or 2.56 per cent to 2,153.88 points. Even as Taragaon Regency went up by Rs 12 to Rs 287, the subgroup was weighed down by Soaltee falling by Rs 15 to Rs 400 and Oriental dropping by seven rupees to Rs 595.

Hydropower continued its freefall by retreating 49.77 points or 2.05 per cent to 2,371.35 points. Shareholders of Sanima Mai saw their stock price fall by Rs 47 to Rs 928, Barun lost Rs 39 to Rs 406 and Api fell by Rs 30 to Rs 605.

Meanwhile, Nepal Bangladesh topped the chart in terms of weekly turnover with Rs 438.54 million, followed by Lumbini General Insurance with Rs 415.09 million, Himalayan General Insurance Co with Rs 321.02 million, Nepal Investment Bank with Rs 314.80 million and NMB Bank with Rs 292.09 million.

Siddhartha Investment Growth Scheme – I was the forerunner with regards to trading volume, with 1.42 million of its scrips changing hands. With 4,202 transactions, Nepal Investment Bank retained its title from the previous week as the firm with most number of transactions under its name.