Nepal | September 28, 2020

Investor confidence still bullish

Himalayan News Service
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Figures in rupees per tola. Source: FNegosida
Figures in rupees per dollar. Source: NRB

Kathmandu, April 9

Following some correction in the previous week, stock investors went on a buying spree in the week of April 3 to 6, pushing the Nepal Stock Exchange (Nepse) index up 21.94 points or 1.62 per cent week-on-week to close at a fresh all-time high of 1,377.42 points.

The benchmark index, which had opened at 1,355.48 points on Sunday had shed 3.94 points by the day’s closing. Then after, country’s only secondary market started to rebound, with the local bourse surging by 10.99 points on Monday and 12.73 points on Tuesday. On Wednesday, Nepse edged up 2.16 points, but it was enough to nudge past previous high of 1,377.33 points recorded on March 27.

The share market remained closed on Thursday in celebration of Ghode Jatra festival.

“Investor sentiment is still in the bullish territory owing to the dismal interest rates being offered by banks and financial institutions,” explained CEO of NMB Capital Shreejesh Ghimire. “Unless there is change in interest rates or a major shift in economic fundamentals, the stock market bull run will likely persist.”

In total, 3.41 million shares of 142 companies worth Rs 2.09 billion were traded through 10,869 transactions in the week. The traded amount was 46.16 per cent less than previous week when the share market had remained open for all five trading days. In the preceding week, 17,544 transactions of 6.81 million scrips of 145 firms had been undertaken that amounted to Rs 3.88 billion.

Sensitive index, which gauges the performance of class ‘A’ stocks, rose 1.76 per cent to 297.38 points. Float index that measures performance of shares actually traded also gained 1.24 per cent to 98.87 points.

Whereas trading remained constant at 201.38 points, hydropower was the only subgroup to land in the red during the week. The sub-index was weighed down by Chilime losing Rs 27 to Rs 1,322, Barun down Rs 20 to Rs 492 and National Hydropower dipping four rupees to Rs 183.

Manufacturing led the pack of gainers in the week. The subgroup surged by 5.67 per cent to 2,139.51 points due to share value of Unilever Nepal soaring by a whopping Rs 2,212 to Rs 31,212.

Finance advanced 2.63 per cent to 705.66 points. Citizen Investment Trust gained Rs 420 to Rs 4,300, Sagarmatha went up by Rs 19 to Rs 309 and Janaki by Rs 15 to Rs 330, among others.

The subgroup of commercial banks rose 1.97 per cent to 1,272.13 points with the likes of Standard Chartered advancing by Rs 117 to Rs 3,135 and Nepal Investment by Rs 57 to Rs 1,045.

Nepal Telecom’s stock price went up by Rs 13 to Rs 709, which in turn pulled the others subgroup up 1.87 per cent to 832.94 points.

Insurance managed to recover some of the loss of the previous week, as the subgroup rose by 1.05 per cent to 6,137.19 points. Life Insurance Co Nepal climbed by Rs 40 to Rs 3,620, Nepal Life by Rs 70 to Rs 3,670 and Shikhar Life by Rs 75 to Rs 1,787.

Hotels and development banks saw only muted gains, with the sub-indices up 0.98 per cent to 1,809.04 points and 0.76 per cent to 1,364.63 points, respectively.

Citizens Bank International took the lead in terms of number of transactions and turnover, securing 561 transactions worth Rs 131.14 million.

Other top listed companies with highest turnover were Nepal Bangladesh Bank with Rs 114.51 million, Standard Chartered Bank with Rs 99.78 million, Nepal Bank with Rs 98.65 million and Nabil Bank with Rs 80.46 million.

Nabil Balanced Fund-I was the forerunner in terms of number of shares traded, with 326,000 of its scrips changing hands.

A version of this article appears in print on April 10, 2016 of The Himalayan Times.

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