Nepal | September 28, 2020

Nepse faces fiscal year-end pressure

Himalayan News Service
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Kathmandu, July 6

With share investors under pressure to pay interest on loans to banks and financial institutions (BFIs) before the fiscal year ends in mid-July, the country’s sole secondary market witnessed fluctuations in the trading week between June 30 and July 4.

The broker companies have said share investors are selling shares to pay back the loans to BFIs. However, some investors are in the wait and see mode. “The market is mostly in downward trend, but investors are bargaining to sell their shares for better returns,” said one brokerage operator, seeking anonymity.

According to him, the bears and bulls were at loggerheads, with sellers adamant about the price of their shares and buyers refusing to pay higher price.

As a result, the Nepal Stock Exchange (Nepse) index recorded only a marginal gain of 0.27 per cent or 3.34 points in review week.

The sensitive index increased by 0.11 per cent or 0.30 point to 271.47 points and float index also inched up by 0.37 per cent or 0.34 point to 92.59 points.

In the review period, weekly turnover increased by 5.81 per cent as compared to the previous week to Rs 2.67 billion. In the previous week, the market witnessed turnover of Rs 2.52 billion. Likewise, the daily average turnover also went up to Rs 533.94 million, up 5.81 per cent against Rs 504.6 million in the previous week.

In the review week, trading of mutual funds soared by 2,211.55 per cent as compared to the previous week to Rs 76.05 million. In the previous week, the mutual funds witnessed turnover of just Rs 3.29 million.

The secondary market had opened at 1,257.16 points on Sunday and dropped by 12.27 points by the time of closing. On Monday, the market fell by another 2.85 points. On Tuesday and Wednesday, it rebounded by gaining 11.02 points and 15.68 points.

However, on Thursday, the local bourse dropped by 8.27 points to close the week at 1,260.50 points.

In the review week, nonlife insurance, microfinance, life insurance, development banks and banking landed in the green zone.

Non-life insurance subgroup was the top gainer of the week, advancing by 1.49 per cent or 75.25 points with the share price of Neco Insurance up Rs 15 to Rs 484.

Microfinance sub-index jumped by 1.26 per cent or 17.98 points to 1,442.26 points. Life insurance sub-index ascended by 1.21 per cent or 73.06 points to 6,077.06 points.

The development banks subgroup went up by 0.53 per cent or 8.58 points to 1,600.36 points and banking inched up by 0.28 per cent or 3.19 points to 1,135.41 points.

Meanwhile, hotels sub-index recorded the biggest drop of 1.55 per cent or 32.56 points to 2,055.35 points.

Trading decreased by 0.99 per cent or 2.63 points to 261.20 points.

Likewise, others sub-index descended by 0.82 per cent or 6.03 points to 722.26 points and finance subgroup fell by 0.74 point or 6.03 points to 616.19 points.

Similarly, manufacturing subgroup dipped by 0.63 per cent or 17.08 points to 2,675.75 points and hydropower was down 0.24 percent or 2.91 points to land at 1,188.35 points.

In the review week, Nepal Bank was the leader in terms of weekly turnover with Rs 207.33 million. It was followed by Prabhu Bank with Rs 164.37 million, Mega Bank with Rs 130.39 million, Shivam Cements with Rs 117.24 million and Global IME Bank with Rs 103.80 million.

In terms of weekly trading volume, Siddhartha Equity Oriented Scheme took the lead with 5,278,000 of its shares changing hands. It was followed by NMB Sulav Investment Fund-1 with 1,635,000 shares, Mega Bank with 632,000 shares, Nepal Bank with 616,000 shares and Prabhu Bank with 610,000 shares.

Meanwhile, Mega Bank was the forerunner in terms of number of transactions with 1,731 deals. Premier Insurance Co with 1,341, Nepal Bank with 1,290, Upper Tamakoshi Hydropower with 1,273 and Ganapati Microfinance Bittiya Sanstha with 1,269 transactions rounded up the top five in this category.

A version of this article appears in print on July 07, 2019 of The Himalayan Times.

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