Nepal | September 21, 2020

Nepse goes on a free fall to nearly 26-month low

Himalayan News Service
Share Now:

Kathmandu, March 24

The country’s only secondary market went on a free fall in the trading week between March 18 and 22, with the Nepal Stock Exchange (Nepse) index witnessing a week-on-week plunge of 67.92 points or 5.27 per cent to settle at nearly a 26-month low.

Share market analysts attribute the market volatility to credit crunch in the banking sector, high bank rates and the new government’s delay in issuing the much-anticipated white paper on the economy.

Capitalising on the reduced rates, however, some savvy investors scooped up shares of otherwise well-performing companies. This, in turn, resulted in the weekly transaction amount surging by 32.99 per cent to Rs 1.72 billion, with 4.60 million shares of 173 companies being exchanged through 23,869 transactions during the review period. In comparison, 17,287 transactions of 3.34 million shares of 174 companies that amounted to Rs 1.29 billion had been undertaken in the preceding week.

In volatile trading, however, Nepse remained southbound throughout the week. Opening at 1,288.36 points on Sunday,
the benchmark index had dropped by 9.40 points by the day’s closing. It shed 8.44 points on Monday and fell by 15.05 points on Tuesday. Owing to intense selling pressure, the local bourse slumped by 24.40 points on Wednesday and descended by 10.63 points on Thursday to close the week at 1,220.44 points.

The last time the local bourse had settled at the current level was on January 31, 2016, when it had closed at 1,220.70 points.

The sensitive index, which gauges the performance of class ‘A’ stocks, took a dive of 5.09 per cent or 13.97 points to 260.41 points. Likewise, the float index that measures the performance of shares actually traded also plummeted by 5.45 per cent or 5.06 points to rest at 87.76 points.

Trading was the only subgroup to land in the green, inching up by 0.65 per cent or 1.36 points to 209.79 points.

Insurance saw the biggest drop among the subgroups, with a plunge of nine per cent or 562.29 points to 5,684.47 points. Share value of Rastriya Beema Co tumbled by 14.72 per cent to Rs 9,125, and National Life by 12.20 per cent to Rs 1,101, among others.

With hotels like Soaltee slumping by 8.59 per cent to Rs 234, Taragaon Regency down 7.22 per cent to Rs 257 and Oriental taking a dive of 12.26 per cent to Rs 465, the hotels subgroup retreated by 8.75 per cent or 168.01 points to 1,752.24 points.

Hydropower plummeted by 7.89 per cent or 123.70 points to 1,442.99 points. Shareholders of Chilime saw the value of their stocks drop by 8.26 per cent to Rs 711 and those of Sanima Mai lost 4.60 per cent to Rs 332.

Trailing close behind, microfinance subgroup plunged by 7.45 per cent or 109.40 points to 1,359.35 points. Chhimek was down 8.43 per cent to Rs 825, Nirdhan Utthan fell by 8.45 per cent to Rs 975, to name a few.

Because of commercial banks like Nabil down 4.69 per cent to Rs 975 and Standard Chartered losing 3.02 per cent to Rs 867, the banking subgroup descended by 4.48 per cent or 51.26 points to 1,091.89 points.

Similar to banking, the sub-index of development banks also fell by 4.02 per cent or 60.59 points to 1,446.46 points. Finance declined by 3.05 per cent or 20.32 points to 646.47 points, others lost 2.81 per cent or 20.01 points to 692.76 points and manufacturing dropped by 1.91 per cent or 42.50 points to 2,184.23 points.

Akin to the previous week, Nepal Life Insurance Co topped the chart in terms of number of transactions and weekly turnover, with 1,887 transactions that totalled Rs 165.82 million. Nabil Bank with Rs 88.66 million, Citizen Investment Trust with Rs 65.10 million, Nepal Bank with Rs 58.40 million and Nepal Investment Bank with Rs 57.60 million rounded up the top five companies with highest traded amount in the review period.

Meanwhile, Nepal Credit and Commerce Bank was the forerunner in terms of trading volume, with 214,000 of its shares changing hands.

NEW LISTINGS

Company Type Units
Aarambha Microfinance Bittiya Sanstha Ordinary 600,000.00
Garima Bikas Bank Bonus 3,306,365.21
Janata Bank Bonus 10,070,919.35
Muktinath Bikas Bank Bonus 4,319,605.53
Nepal Community Development Bank Rights 2,643,538.80
Nepal Finance Bonus 244,219.00
Premier Insurance FPO 659,565.00
Radhi Bidyut Co Ltd Ordinary 4,100,000.00
Ridi Hydropower Bonus 284,598.00
RSDC Laghubitta Bittiya Sanstha Bonus 149,500.00
Womi Microfinance Bittiya Sanstha Bonus 129,600.00

Source: Nepse


A version of this article appears in print on March 25, 2018 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Photo Gallery: Rohingya refugees receive relief in Kapan amid COVID-19 crisis

KATHMANDU, SEPTEMBER 21 Hiteri Foundation provided food relief packages to long-persecuted Rohingya Muslim refugees here in Kapan on Sunday, September 20. More than 175 families are taking shelter in Kapan after entering Nepal following a mass exodus from their native Myanamar. Also seen in pi Read More...

Nepali Army soldier Nepal’s first security person to die of COVID-19

KATHMANDU, SEPTEMBER 20 Country witnessed the first death of a security person due to COVID-19. The deceased, a 34-year-old soldier of Nepali Army was posted in Kathmandu. He hailed from Ramechhap district. However, Nepali Army has not yet revealed the identity of the deceased. The deceased wa Read More...

Mane double eases Liverpool to 2-0 win over 10-man Chelsea

LONDON: Two goals from Sadio Mane just after halftime eased champions Liverpool to a 2-0 win over 10-man Chelsea in the Premier League season's first heavyweight clash at Stamford Bridge on Sunday. A dull game never threatened to live up to the eight-goal thriller when the sides met in Read More...

Son and Kane combination leads Spurs rout of Southampton

SOUTHAMPTON: Son Heung-min scored four goals set up by Harry Kane as Tottenham Hotspur came from a goal down to overwhelm Southampton 5-2 on Sunday and earn their first Premier League win of the season. In an action-packed first half at St Mary's, both sides had a goal ruled out by VAR before Read More...

Women, children highly affected by COVID pandemic

KATHMANDU, SEPTEMBER 20 The National Women Commission today organised a webinar on ‘Impact of COVID-19 on Women and Initiatives Taken by NWC and Nepal Police in Addressing Gender Based Violence Issues’ to highlight impact of pandemic on women and children across the country. According to t Read More...

Thapa vows to establish RPP as strong force

KATHMANDU, SEPTEMBER 20 Chairperson of Rastriya Prajatantra Party Kamal Thapa today pledged to establish the party as a strong force. The country would become prosperous and sovereign only by pursuing the ideology RPP as Nepal is faced with complex geo-political situation, he claimed at a virt Read More...

NCP Secretariat dwells on Cabinet reshuffle

KATHMANDU, SEPTEMBER 20 The Secretariat of the ruling Nepal Communist Party (NCP) today began discussion on Cabinet reshuffle. NCP Spokesperson Narayan Kaji Shrestha said the meeting discussed policy issues regarding the Cabinet reshuffle from different angles, but it did not take a decision o Read More...

Ministry of Urban Development

Bancharedanda landfill site to be completed by mid-October

KATHMANDU, SEPTEMBER 20 State Minister of Urban Development Rambir Manandhar said construction of a sanitary landfill site at Bancharedanda on the border of Nuwakot and Dhading districts will be completed by mid-October. During monitoring of the under-construction landfill site today, State Mi Read More...