Kathmandu, October 14
Nepal Stock Exchange (Nepse) index dropped more than two per cent during the five trading days of the week between October 8 and 12 — the week after the declaration of leftist alliance in the country for the forthcoming elections. The country’s sole secondary market had started to decline in the previous week just after the declaration of the leftist alliance.
Opening at 1,542.65 points on Sunday, the benchmark index had slumped by 32.64 points by the time of closing for the day. Nepse index slipped further to 1,501.89 points on Monday. However, the local bourse reversed course thereafter — inching up to 1,502.63 points on Tuesday, edging up to 1,505.99 points on Wednesday and finally resting at 1,510.02 points on Thursday.
In tandem with Nepse index, the sensitive and float indices also dipped in the review period. The sensitive index fell to 317.63 points, declining by 1.93 per cent and the float index landed at 108.81 points, down 2.54 per cent.
According to the investors, the political development of the last two weeks had a major role in dragging the secondary market down.
Nawaraj Acharya, chairman of Nepal Capital Market Investors Association, said that investor sentiment has taken a hit as the latest political developments have created uncertainty regarding the elections. “Moreover, banks have still not slashed the interest rates, even though the credit crunch situation has eased, which has also dampened the mood,” he said.
Another technical reason, according to Acharya, is uncertainty in implementation of the fully automated trading platform. Nepse had declared that the fully automated trading system would be implemented from November. But, there has been no headway in this front.
Apart from the sub-index of others, all the sub-indices landed in the red during the week. The others sector rested at 779.72 points, inclining by 6.47 per cent or 47.43 points in the review period. This was basically on the back of share price of Nepal Telecom — the company with the highest market capitalisation among the listed companies — surging by 7.73 per cent to Rs 780.
The sub-index of commercial banks fell by 2.75 per cent to 1,295.78 points in the week. Share price of Everest Bank came down to Rs 1,210, down 1.47 per cent. Similarly, shareholders of Standard Chartered Bank saw their share value drop by 4.13 per cent to Rs 2,114 per unit.
Sub-index of development banks declined by 3.65 per cent to 1,839.25 points during the week. Similarly, sub-index of finance also slipped by 2.77 per cent to 771.95 points. The manufacturing sector closed at 2,567.73 points, declining by 44.45 points or 1.7 per cent.
Similarly, the sub-index of hotels rested at 2,322.39 points, falling 72.31 points or 3.02 per cent during the review period. The hydropower sector shed 2.05 per cent to 1,793.32 points in the week. Likewise, the trading sector slipped by 13.6 points or 5.81 per cent to 220.27 points. The sub-index of insurance sector closed at 8,247.25 points, with a loss of 211.10 points or 2.49 per cent.
A total of 3.94 million units of shares of 172 companies worth Rs 1.76 billion were traded through 20,008 transactions in the review period.
Chilime Hydropower Company topped the list in terms of transactions with Rs 135.63 million. Similarly, Standard Chartered Bank was in the second position with Rs 65.03 million, Nepal Telecom was in the third position with Rs 55.65 million, Nepal Bank was in the fourth position with Rs 55.14 million and Nepal Life Insurance Company was in the fifth position with Rs 52.72 million in the review period.
Likewise, Nepal Bank secured the top position in terms of trading volume with 162,000 units of its shares changing hands and Chilime Hydropower Company was the forerunner in terms of number of transactions, with 1,122.
|Lumbini General Insurance||Rights||3,900,000|
|NB Insurance Company||Rights||2,700,000|
|Purnima Bikash Bank||Rights||66,911.82|
A version of this article appears in print on October 15, 2017 of The Himalayan Times.
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...
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...
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...
KATHMANDU: Nepal's Ambassador to Oman, Sharmila Parajuli Dhakal paid a courtesy call on Labour Minister of Oman Dr Mahad bin Saeed bin Ali Baouin at latter’s office. Ambassador Dhakal congratulated Dr Mahad for his appointment to the post of Labour Minister of Oman. On the occasion, both o Read More...
KATHMANDU: K-pop supergroup BTS have announced their new album titled BE, which they will be releasing on November 20. The group’s label Big Hit Entertainment took to the group's online fan community BTS Weverse on September 28 to make the announcement, reports The Korea Herald. Without el Read More...
Each side says the other firing heavy artillery Worries resurface about South Caucasus stability Azerbaijan says six of its civilians killed Nagorno-Karabakh said 15 more of its soldiers killed YEREVAN/BAKU: Fighting between Armenia and Azerbaijan escalated sharply on Monday in a Read More...
LIVERPOOL: Premier League champions Liverpool maintained their 100% start to the season with a 3-1 win against Arsenal at Anfield on Monday leaving them level on nine points with pacesetters Everton and Leicester City. The visitors took the lead through an Alexandre Lacazette strike but L Read More...
LONDON: Aston Villa moved into the Premier League top four after they strolled to a 3-0 win at Fulham thanks to goals from Jack Grealish, Conor Hourihane and Tyrone Mings in a lopsided contest on Monday. The result left Villa, who narrowly avoided relegation last season, fourth on a maximu Read More...