Nepal | September 28, 2020

Investor pessimism weighs on Nepse

Himalayan News Service
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Kathmandu, August 20

News of the securities market regulator clarifying its stance on scrapping the committee to look into illicit flow of funds in the country’s only secondary market did little to assuage jittery share investors, as Nepal Stock Exchange (Nepse) index dropped by 39.81 points or 2.24 per cent to rest at 1,735.06 points, in the trading week of August 14 to 17.

Starting the week at the previous week’s close of 1,774.87 points on Sunday, the benchmark index had plunged by 40.94 points by the day’s closing. Nepse dropped another 39.12 points on Monday to retreat below the threshold of 1,700 points. The local bourse managed to salvage some of the loss on Tuesday and Wednesday by ascending 22.64 points and 17.61 points, respectively. The share market remained closed on Thursday in celebration of Janai Purnima.

Altogether, 8.33 million shares worth Rs 4.40 billion were traded through 25,731 transactions in the week. In the previous week, when the stock market had remained open for normal five trading days, 31,402 transactions of 10.71 million scrips that amounted to Rs 6.06 billion had been undertaken.

The sensitive index, which gauges the performance of class ‘A’ stocks, fell 8.17 points or 2.13 per cent to 374.61 points. Likewise, the float index that measures the performance of shares actually traded also dropped 2.96 points or 2.24 per cent to 128.88 points.

Trading continued to hold stationary at 202.79 points during the review period. All the remaining subgroups landed in the red.

Hydropower subgroup recorded the biggest loss of 86.97 points or 3.38 per cent to 2,486.18 points. Share value of hydropower companies like Chilime dropped by Rs 31 to Rs 1,296, Sanima Mai by Rs 62 to Rs 963 and Api by Rs 110 to Rs 670, among others.

Banking, the stock market heavyweight, dropped by 40.09 points or 2.39 per cent to 1,633.93 points. This was on the back of commercial banks like Nabil down Rs 70 to Rs 2,290, Standard Chartered plunging by Rs 205 to Rs 3,345 and Nepal Investment down Rs 18 to Rs 1,024.

Insurance subgroup saw the previous week’s gain on 0.39 per cent wiped out as the sub-index plunged by 192.17 points or 2.24 per cent to 8,400.08 points. Stock price of Nepal Life took a dive of Rs 210 to Rs 3,640 and that of Shikhar by Rs 145 to Rs 3,255.

Development banks retreated by 38.67 points or 2.09 per cent to 1,808.59 points. Nagabeli was down Rs 32 to Rs 4,218, Swabhalamban declined Rs 75 to Rs 2,525, and Nirdhan Utthan fell Rs 52 to Rs 2,060.

Others fell 16.77 points or 2.06 per cent to 798.81 points. Even as Nepal Telecom’s share value went up by four rupees to Rs 684, the sub-index was weighed down by the stock price of Hydroelectricity Investment and Development Company taking a beating of Rs 35 to Rs 355.

After leading the pack of gainers in the previous week, hotels fell back in the red again this time around as the subgroup saw a dive of 44.19 points or 2.03 per cent to 2,135.64 points. Soaltee’s share price fell by Rs 10 to Rs 398, Oriental landed at Rs 571 (down three rupees) and Taragaon Regency rested at Rs 290 (down five rupees).

Finance was down 9.03 points or 1.05 per cent to 849.88 points and manufacturing shed 0.13 points or 0.005 per cent to rest at 2,534.99 points in the week.

A version of this article appears in print on August 21, 2016 of The Himalayan Times.

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