Nepal | September 28, 2020

Insurance subgroup leads market rally

Himalayan News Service
Share Now:

Source: Nepse

Kathmandu, January 13

The secondary market index went up by 16.46 points or 1.15 per cent in the trading week between January 7 and 11.

The Nepal Stock Exchange (Nepse) remained open for only four days against the normal five trading days as the secondary market remained closed on Thursday due to public holiday of Prithvi Jayanti.

Along with Nepse index, sensitive and float indices also witnessed gains. The sensitive index rose by 4.02 points or 1.34 per cent to 303.68 points and float index went up by 1.25 points or 1.22 per cent to 103.5 points.

The benchmark index had opened at 1,423.83 points on Sunday and rested at 1,431.8 points for the day. The secondary market continued in the same trajectory on Monday and Tuesday. The local bourse advanced to 1,443.8 points on Monday and to 1,456.07 points on Tuesday. However, owing to selling pressure on Wednesday, Nepse dropped by 15.78 points to 1,440.29 points on the last trading day of the week.

Capital market experts have stated market is being driven by fundamental reasons rather than external factors. “Major reason of fluctuation is excessive supply of shares and deposit crunch in financial system. These two reasons are affecting market movement,” said Shreejesh Ghimire, CEO of NMB Capital Ltd.

The market rallied on the back of insurance subgroup in review period. The sector soared by 152.49 points or 2.09 per cent to rest at 7,457.63 points. Share price of Nepal Life Insurance Company surged by 5.26 per cent to Rs 1,821 per unit, Sagarmatha Insurance Company went up by 3.04 per cent to Rs 1,390 per unit and share price of Life Insurance Corporation Nepal rose by 2.79 per cent to Rs 1,989 per unit.

Similarly, sub-index of class ‘A’ financial institutions rose by 13.04 points or 1.06 per cent to 1,244.95 points. Share price of Everest Bank increased by 5.73 per cent to Rs 922 per unit and that of Himalayan Bank went up to Rs 663 per unit, with a gain of 2.95 per cent.

Other sub-indices of financial group also increased during the week. The finance group went up by 2.72 points or 0.37 per cent to 735.74 points. Likewise, the development banks sector increased by 18.87 points or 1.18 per cent to 1,614.82 points and the sub-index of microfinance rose by 17.43 points or 1.01 per cent to 1,741.97 points.

The sub-index of hotels gained 36.82 points or 1.74 per cent to 2,152.57 points. Similarly, sub-index of others group rose by 9.72 points or 1.26 per cent to 783.07 points, hydropower group went up by 5.36 points or 0.28 per cent to 1,921.11 points and trading group inched up by 1.69 points or 0.89 per cent to 192.4 points.

Meanwhile, manufacturing group fell by 18.2 points or 0.72 per cent to 2,506.8 points.

Altogether, 4.05 million shares of 174 firms worth Rs 1.71 billion were traded through 17,393 transactions in the week. The traded amount was 36.79 per cent less than total weekly turnover of the previous week.

Nepal Life Insurance Company secured top position in terms of total turnover with Rs 237.65 million. It was followed by Sanima Mai Hydropower with Rs 93.66 million, Everest Bank with Rs 80.12 million, Standard Chartered Bank with Rs 62.66 million and Nabil Bank with Rs 48.62 million.

Nepal Life Insurance Company also topped list in terms of trading volume and total number of transactions with 199,000 units of its shares changing hands through 1,475 transactions.

New listings

Company Type Unit
Excel Development Bank Rights 1,922,812.50
Nabil Bank Bonus 18,577,140
Ngadi Group Power Bonus 486,868
Sanima Bank Bonus 11,036,214.40
Tourism Development Bank Bonus 1,710,775

Source: Nepse

A version of this article appears in print on January 14, 2018 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...