Nepse defies popular market belief

KATHMANDU:Contrary to the popular belief that decrease in capital gain tax will push the Nepse high up, the Nepse this week posted a marginal growth of 1.97 points to 737.84 points from last week’s closure of 735.87 points.

The transaction amount has also increased by a minimal 3.52 per cent to Rs 407.91 million against last week’s Rs 394 million. Last week — after the budget — the Nepse gained 32.99 points against 35.45 points a week earlier.

However, the shareholders of commercial banks and finance companies sub-groups gained as these two sub-groups gained 18.19 points to 782.67 points and 7.17 points to 699.36 points respectively. The remaining — development banks, insurance companies, trading, hydropower companies, others and hotels — sub-groups lost except the manufacturing sub-group that did not witness any trading this week.

The hydropower companies and others sub-groups plunged by 37.36 points to 980.07 points from last week’s closing of 1028.43 points and 37.58 points to 687.31 points from 724.89 points putting a break to Nepse’s last two weeks impressive growth.

The sensitive index — the barometer of Group-A companies — gained 2.59 points to 197.77 points from last week’s closing of 195.18 points. Last week, the 78-scrip sensitive index had flared by 7.09 points to close at 195.18 points.

Similarly, the float index — calculated on the basis of real transactions — also gained 1.07 points to 71.15 points from last week’s closing of 70.08 points.

This week Nepal Bangladesh Bank (with Rs 44.04 million) topped the chart in terms trading amount followed by Bank of Kathmandu (with Rs 35.27 million), Nabil Bank (with Rs 28.71 million), Standard Chartered Bank Nepal (with Rs 28.01 million) and Nepal Investment Bank (with Rs 26.63 million).

In terms of number of share units traded National Hydropower Company topped the chart with 1,68,000-unit shares changing hands and in terms of number of transactions Citizens Bank International topped the chart with 561 transactions.