Bullish sentiment spurs Nepse index
Kathmandu, June 18
Bullish investor sentiment shows no sign of abating in the secondary market as the Nepal Stock Exchange (Nepse) index recorded a weekly gain of 4.2 per cent or 66.24 points in the week of June 12 to 17.
The local bourse was northbound throughout the week. Opening at 1,566.7 points on Sunday, the benchmark index had surged by 31.26 points by the day’s closing.
On Monday, Nepse index advanced by 11.63 points to sail past the 1,600-point threshold.
On Tuesday, daily share transaction soared past the two-billion-rupee mark for the first time in history to hit an all-time high of Rs 2.2 billion, while Nepse added 4.56 points.
On Wednesday, Nepse gained 6.32 points and another 12.47 on Thursday to close the week at yet another fresh peak of 1,632.94 points.
In total, 15.29 million shares of 149 companies worth Rs 9.31 billion were traded through 34,610 transactions during the week.
The traded amount was 35.86 per cent higher than the preceding week when 29,812 transactions of 9.24 million scrips of 149 firms that amounted to Rs 6.86 billion had been
Sensitive index, which gauges the performance of class ‘A’ stocks, rose by 4.07 per cent or 13.81 points to 352.63 points.
Likewise, the float index that measures the performance of shares actually traded also gained 4.15 per cent or 4.73 points to land at 118.44 points during the review period.
Whereas trading remained constant at 201.38 points, others was the only subgroup to land in the red. Nepal Telecom’s share value dipping by two rupees to Rs 667 caused the others subgroup to shed 0.3 per cent to close at 783.61 points.
Similar to the previous week, the market rally was led by insurance subgroup, as the sub-index of insurance firms surged by 7.99 per cent to 9,345.88 points.
National Life’s stock price rose by Rs 230 to Rs 3,445, that of Prime Life by Rs 505 to Rs 2,380, and Life Insurance Co Nepal by Rs 70 to Rs 3,700, among others.
The subgroup of development banks trailed close behind, advancing by 7.31 per cent to 1,642.44 points.
According to stock brokers, rumours that the central bank will soon instruct development banks to raise the paid-up capital are fuelling the demand for shares of these institutions.
Rural Microfinance’s share price surged by Rs 318 to Rs 1,344 and Chimmek’s by Rs 135 to Rs 2,235.
Hydropower subgroup recouped the loss of 1.89 per cent of the previous week by gaining 3.89 per cent to 2,548.71 points this time around. Barun rose by Rs 119 to Rs 513, Sanima Mai by nine rupees to Rs 880 and Chilime inched up one rupee to 1,395.
Banking subgroup rose by 3.32 per cent to 1,465.39 points, with commercial banks like Everest up Rs 230 to Rs 3,125 and Standard Chartered Nepal up Rs 386 to Rs 3,336.
Unilever Nepal’s stock price went up by Rs 199 to Rs 35,200, which in turn pulled up the sub-index of manufacturing by 2.25 per cent to 2,392.01 points.
Hotels climbed 1.85 per cent to 1,982.66 points while finance edged up 0.76 per cent to 741.39 points.
Meanwhile, Nepal Bangladesh Bank topped the chart in terms of number of transactions and turnover — 2,680 transactions worth Rs 788.23 million. Other listed firms that made it to the top five in terms of turnover were Nepal Insurance Co (Promoter Share) with Rs 490 million, United Insurance Co Nepal with Rs 436.86 million, Everest Bank with Rs 386.12 million and Rural Microfinance Development Centre with Rs 278.45 million.