Nepal | October 28, 2020

Benchmark index sheds 0.7pc

Himalayan News Service
Share Now:

Kathmandu, August 3

The election of new prime minister was unable to lift the secondary market out of the bearish territory as Nepal Stock Exchange (Nepse) index shed 0.7 per cent or 12.75 points to land at 1,813.72 points today.

While the share market movement used to be in tandem with political developments a few years ago, there seems to be a shift in the trend owing to maturity of the secondary market and raised awareness among stock investors.

“Nepse is in a correction mode at present, which had been due for a while considering the market rally,” explained Shreejesh Ghimire, CEO of NMB Capital Ltd.

According to him, while investor sentiment has taken a dip in recent days, the financial reports that have been published so far have mostly been above expectations. “It would be prudent for the investors to adopt caution at this point, but there is no need for panic selling.”

The sensitive index, which gauges the performance of class ‘A’ stocks, fell 0.66 per cent or 2.61 points to 390.75 points. The float index that measures the performance of shares actually traded also dipped 0.61 per cent or 0.82 points to 134.69 points.

With many stock traders seemingly wary of entering the market, the daily turnover — which had surpassed Rs two billion every day of the week in the past week — stood at Rs 1.28 billion today. Extension of trading hours in the country’s only secondary market and reduction in brokerage charge had been attributed as the main reasons for surge in transaction amount as well as volume in the past week.

Dipak Kafle, a stock market analyst, meanwhile, said over-speculations could be fuelling the bearish market sentiment as well. “Considering the performance of the listed companies that have published their financial reports, share investors should have been filled with optimism at this point.”

Apart from trading sub-index, which has remained constant at 202.79 points since June 28, all the subgroups landed in the red today.

Manufacturing and production subgroup was the major loser, as the sub-index dropped by 1.56 per cent or 41.4 points to 2,607.29 points, weighed down by Bottlers Nepal (Tarai) plunging by Rs 607 to Rs 7,243.

Trailing close behind, finance fell 1.18 per cent or 10.55 points to 882.96 points, mostly because of Citizen Investment Trust slumping by Rs 125 to Rs 5,125.

Banking — the subgroup with highest weightage on the benchmark index — shed 0.78 per cent or 13.48 points to 1,707.18 points because of commercial banks like Nabil down Rs 55 to Rs 2,385, and Standard Chartered down Rs 25 to Rs 3,650, among others.

Likewise, hydropower dipped 0.66 per cent or 17.58 points to 2,653.16 points; development banks dropped 0.58 per cent or 11.01 points to 1,885.74 points; hotels fell 0.48 per cent or 10.89 points to 2,244.32 points; and insurance was down 0.38 per cent or 33.82 points to 8,858.52 points.


A version of this article appears in print on August 04, 2016 of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

City thrash woeful Marseille to stay top in Champions League Group C

MARSEILLE: Manchester City were barely troubled as they claimed their second victory in Champions League Group C by beating Olympique de Marseille 3-0 at the Stade Velodrome on Tuesday. Ferran Torres, Ilkay Gundogan and Raheem Sterling found the back of the net as Pep Guardiola's side s Read More...

La Liga, Barcelona, Lionel Messi

Barcelona president Bartomeu resigns after Messi row

BARCELONA: Barcelona president Josep Maria Bartomeu resigned from the club on Tuesday ahead of a vote of no confidence that was due to be held next month after some 20,000 fans signed a petition demanding that he step down. The rest of the board of directors also resigned. "It's a thought- Read More...

Bayern edge past Lokomotiv 2-1 to stretch winning run

MOSCOW: Bayern Munich's Joshua Kimmich volleyed in a 79th-minute winner on Tuesday as they battled past hosts Lokomotiv Moscow 2-1 in their Champions League Group A match to extend their winning run in the competition to 13 consecutive games. Leon Goretzka headed them in front in the 13 Read More...

US early voting tops 70 million, continuing historic pace

WASHINGTON: More than 70 million Americans have cast ballots in the US presidential election, more than half the total turnout of the 2016 election with one week to go until Election Day, according to a Tuesday tally from the US Elections Project. The tally, which shows a record-breaking Read More...

Australia confirms playing India in all three formats

MELBOURNE: Australia will kick off its international summer with limited overs series against India in Sydney and Canberra from Nov. 27 before the four-test series starts in Adelaide as a day-night match on Dec. 17, Cricket Australia (CA) said on Wednesday. A tour worth about A$300 million ($ Read More...

Bagmati Province Governor Prasai tests positive for Covid-19

JHAPA: Bagmati Province Governor Bishnu Prasad Prasai tested positive for Covid-19 on Tuesday. Prasai had reached his home at Mechinagar, Jhapa from Hetauda-based Province Governor's Office for Dashain celebrations. Governor Prasai said that he had mild symptoms such as body ache and sweating Read More...

India's coronavirus cases set to cross 8 million

MUMBA: India's tally of coronavirus cases stood less than 10,000 away from the grim milestone of 8 million, as 43,893 new cases were reported in the last 24 hours, data from the federal health ministry showed. Totalling 7.99 million, India has the second-most number of confirmed cases after t Read More...

Typhoon Molave lashes Vietnam coast, 26 fishermen missing

HANOI  At least 26 fishermen were missing at sea as one of the strongest typhoons in two decades tore into Vietnam's central coastline on Wednesday, uprooting trees and forcing hundreds of thousands into shelter. Typhoon Molave, packing winds of up to 135 kilometres (83.9 miles) per hour, wa Read More...