Nepal | September 29, 2020

Investor optimism lifts local bourse

Himalayan News Service
Share Now:

Kathmandu, September 8

The country’s sole secondary market seemed buoyant in the trading week of September 2 to 6 on prospects of banks and financial institutions (BFIs) lowering the interest rates on margin loans.

After moving either way in single digits for the past several weeks, the Nepal Stock Exchange (Nepse) index surged by 4.06 per cent or 48.08 points in the review period, with the turnover, trading volume and number of transactions witnessing significant rise.

The country’s only share market recorded an average daily turnover of Rs 576 million during the week, which was almost the total transaction amount of the previous week of Rs 803 million. While it has to be noted that the share market had
remained open for only four days in the previous week against normal five days in the review period, the traded amount in the review week was a staggering 259.34 per cent higher. Compared to previous week’s 2.54 million shares changing hands through 11,788 transactions, 10.25 million shares of 193 companies were traded through 32,285 transactions during this week.

“The market movement was in tandem with investor optimism on prospects of BFIs lowering the interest rate on margin loans,” explained Ambika Prasad Poudel, chairman of Nepal Investors Forum.

While BFIs are currently providing margin loan to institutional investors at around 12 per cent and at 14 per cent for individual investors, Poudel said that BFIs have verbally assured investors the rates would be lowered by up to two percentage points in the near future as the market is becoming flush with liquidity.

Opening at 1,181.69 points on Sunday, the benchmark index had gone up by 8.59 points by the end of the day. On Monday, the market rose by 15.98 points to breach the 1,200-point threshold after 10 trading days and rose by 3.98 points to 1,210.24 points on Tuesday.

On Wednesday, the local bourse surged by 23.89 points, but then dipped by 4.36 points on Thursday to close the week at 1,229.77 points.

Similarly, the sensitive index jumped by 4.22 per cent or 10.56 points to 260.35 points and the float index also went up by 4.56 per cent or 3.88 points to 88.95 points.

All 11 subgroups landed in the green zone in the review period.

The banking subgroup led the pack of gainers, soaring by 4.94 per cent or 50.52 points to 1,072.31 points, on the back of share price of commercial banks like Nabil going up by Rs 18 to Rs 965.

The non-life insurance sub-index ascended by 3.59 per cent or 206.99 points to 5,971.14 points as Everest Insurance’s share value jumped by Rs 74 to Rs 1,304.

Similarly, the manufacturing sub-index advanced by 3.49 per cent or 75.34 points to 2,232.94 points, with Bottlers Nepal (Tarai) gaining Rs 281 to Rs 6,470.

Development banks sub-index went up 3.37 per cent or 48.30 points to 1,477.34 points. Likewise, the hotels subgroup rose by 3.30 per cent or 60.11 points to 1,877.18 points due to share price of Soaltee gaining Rs 10 to Rs 250.

Meanwhile, the hydropower subgroup surged by 2.86 per cent or 39.14 points to 1,405.48 points, on the back of Chilime’s share price increasing by Rs 25 to Rs 736.

Microfinance subgroup climbed 2.72 per cent or 40.22 points to 1,514.15 points, as Chhimek rose by Rs 23 to Rs 913. Similarly, the others sub-index also ascended by 2.71 per cent or 19.45 points to 735.31 points because of Nepal Telecom’s share value up Rs 16 to Rs 760.

The life insurance subgroup went up by 2.30 per cent or 127.23 points to 5,648.38 points. Finance subgroup rose 1.96 per cent or 11.93 points to 619.75 points.

Meanwhile, the trading sub-index also inched up by 0.46 per cent or 0.97 point to 208.3 points.

In the review period, NMB Bank took the lead in terms of trading volume, number of transactions and weekly turnover —  with 664,000 of its shares changing hands through 1,546 transactions worth Rs 220.05 million.

NIC Asia Bank with Rs 208.63 million, Nepal Life Insurance Company Ltd with Rs 150.81 million, Kumari Bank with Rs 123.74 million and Nepal Investment Bank (Promoter) with Rs 122.31 million rounded up the top five firms in terms of weekly turnover.


Company Type Unit
Asian Life Insurance Company Bonus 483,355.94
Green Development Bank Rights 4,000,000
Prabhu Bank Rights 2,326,287

A version of this article appears in print on September 09, 2018 of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Kathmandu Valley records 817 infections on Monday

KATHMANDU: Kathmandu valley logged over 800 additional cases of coronavirus infection in the last 24 hours. As per the Health Ministry’s latest report, 817 new infections surfaced in the valley today, which 60.47 per cent of the total caseload. Read Also: 1,351 new cases take Nepal’s coro Read More...

Four Covid-19 fatalities recorded on Monday, tally shifts to 481

KATHMANDU: Four people passed away from Covid-19 related complications in the last 24 hours, with which the nationwide death-toll has moved to 481. Two women and two men lost their lives due to this infection, the Health Ministry’s latest update showed. Read Also: 1,351 new cases take Nepal Read More...

Royal Bengal Tiger of Chitwan National Park

Mahout killed in tiger attack in Chitwan National Park

CHITWAN: A man has been killed in a tiger attack in an intermediate community forest of Chitwan National Park today. Previously, a person was killed by a tiger two days ago on Saturday in the western part of Chitwan district. The deceased has been identified as Babana Chaudhary (55) of Ratnanagar Read More...

Coronavirus , vaccines, vaccines trails

Inovio's potential COVID-19 vaccine trial on partial clinical hold

LONDON: Inovio Pharmaceuticals Inc said on Monday the US Food and Drug Administration had placed a partial clinical hold on the company's planned mid-to-late-stage trial of its experimental coronavirus vaccine candidate. The company said the pause was not due to any side effects in its early-stag Read More...

Ronaldo double earns point for 10-man Juventus at Roma

ROME: Cristiano Ronaldo’s second goal of the night rescued a 2-2 draw for 10-man Juventus away to AS Roma in Serie A on Sunday, after Jordan Veretout had twice put the capital club in front. Veretout and Ronaldo netted penalties after both teams were penalised for handball, and the French midfield Read More...

Nepal COVID-19 Update: 1351 new cases, 742 recoveries, four fatalities recorded on Monday

KATHMANDU: Nepal’s Health Ministry, in its regular press briefing, shared the latest updates on coronavirus contagion from across the country, and government’s response to the health crisis. READ ALSO: Kathmandu Valley records 817 infections on Monday As of today, 998,407 tests throug Read More...

K-pop’s BLACKPINK drop teaser for title track ‘Lovesick Girls’ from debut album

KATHMANDU: K-pop’s most popular girl band BLACKPINK on September 28 announced Lovesick Girls, the title track of their debut full-length LP The Album. According to The Korea Times, the group's label YG Entertainment dropped a teaser poster on social media, announcing the title track, Lovesi Read More...

President issues three ordinances

KATHMANDU: President Bidya Devi Bhandari has issued three ordinances, including one related to prevention and control of acid and other harmful chemicals. The President issued these ordinances in accordance with Article 114 (1) of the Constitution of Nepal and on the recommendation of the Council Read More...