Nepse in bearish trend
Banks and financial institutions (BFIs) have started publishing their positive financial reports, but market analysts believe that most of them will be distributing only cash dividend. As a result, the Nepal Stock Exchange (Nepse) index plunged by 2.63 per cent or 31.82 points in the trading week between August 19 and 23.
“In Nepal, the stock market is such that if the BFIs only distribute cash dividend, the market tends to drop,” informed Uttam Aryal, chairman of Nepal Investors Association, adding that when BFIs provide share dividend or both cash and share dividend, the local bourse tends to pick up pace. “Till date, three BFIs have already announced of distributing cash dividend and I think the market will be following a downward trend for the next few months.”
According to Aryal, Nepali share investors are happy when they receive bonus and rights shares instead of just cash dividend.
The benchmark index opened on Sunday at 1,210.32 points and by the end of the trading day it had lost 14.03 points to close at 1,196.29 points and remained southbound for the rest of the week. On Monday, the market decreased by 8.22 points to land at 1,188.07 points and further dropped by 4.18 points on Tuesday to 1,183.89 points.
On Wednesday too the local bourse dipped by 1.47 points to 1,182.42 points and on Thursday it went down by 3.92 points to close the week at 1,178.50 points.
Similarly, the sensitive index descended by 2.50 per cent or 6.39 points to 248.99 points and the float index fell by 2.76 per cent or 2.41 points to 84.68 points.
In the review period, except for trading, all the subgroups were in the red zone.
Trading rose by 1.44 per cent or 2.95 points to 207.33 points.
Following the general market trend, the life insurance subgroup, which was the biggest loser of the week, fell by 4.06 per cent or 235.81 points to 5,566.03 points, with the share price of Nepal Life Insurance Company down Rs 41 to Rs 915.
The manufacturing sub-index also dipped by 3.71 per cent or 82.50 points to 2,139.97 points. Unilever Nepal Ltd’s share price went down by Rs 1,402 to Rs 22,573.
Likewise, the microfinance subgroup declined by 3.28 per cent or 50.24 points to 1,479.23 points. This was due to share price of Chhimek Laghubitta Bikas Bank descending by Rs 19 to Rs 900. Similarly, the non-life insurance sub-index also dipped 3.25 per cent or 193.87 points to 5,766.63 points, as share price of Everest Insurance Company fell by Rs 46 to Rs 1,229.
Meanwhile, the hydropower subgroup descended by 2.78 per cent or 39.38 points to 1,374.08 points. This was due to Chilime Hydropower Company’s share price going down by Rs 16 to Rs 715. The banking sub-index also went down by 2.59 per cent or 27.02 points to land at 1,014.3 points with the share price of Standard Chartered Bank declining by Rs 19 to Rs 725.
The development bank subgroup decreased by 2.54 per cent or 37.40 points to rest at 1,431.93 points. Likewise, the hotels sub-index went down by 2.18 per cent or 40.33 points to 1,809.44 points.
Meanwhile, finance subgroup descended by 1.61 per cent or 9.99 points to 608.81 points and the others sub-index also fell by 0.83 per cent or 6.04 points to 717.59 points.
Altogether, 4.42 million shares of 185 companies worth Rs 1.17 billion were traded through 16,620 transactions during the week. The traded amount was 17.84 per cent lower than the total weekly turnover of the previous week, which was recorded at Rs 1.43 billion. In the past week, 4.5 million shares of 185 companies had changed hands through 22,520 transactions.
In the review period, NMB Bank took the lead in weekly turnover and trading volume, with 213,000 units of its shares changing hands worth Rs 66.16 million. In terms of number of transactions, Nepal Life Insurance Company was at the top with 579 transactions.
Gramin Bikas Laghubitta Bittiya Sanstha with Rs 46.41 million, NLG Insurance Company with Rs 43.06 million, Nepal Investment Bank (Promoter) with Rs 41.29 million and Global IME Bank with Rs 36.56 million rounded up the top five firms in terms of weekly turnover.
New listings resume
KATHMANDU: The Nepal Stock Exchange (Nepse) has resumed new listing of shares after a one-month hiatus.
It had halted new listing services from July 17 to August 17. As per Nepse Spokesperson Murahari Parajuli, there were some issues regarding the fees that listed firms had to pay to Nepse for new listings, hence listing process was stopped.
Now that the issue has been resolved, Nepse has begun new listings, he added. As per Parajuli, Nepse recorded new listings of 12 firms in the week.
Company Type Units
Bhargav Bikas Bank Rights 2,112,000
Hamro Bikas Bank Bonus 334,888
Himalayan Bank Bonus 16,229,059
Karnali Development Bank Rights 3,397,500
Lumbini Development Bank Rights 1,646,442
Mega Bank Nepal Bonus 9,986,951.53
Mirmire Laghubitta Bittiya Sanstha Bonus 138,600
Nadep Laghubitta Bittiya Sanstha Ordinary 1,600,000
Nepal Community Development Bank Bonus 417,461
NMB Bank FPO 11,415,163
Siddhartha Bank Bonus 9,556,564.02
Suryodaya Laghubitta Bittiya Sanstha Bonus 76,000