Though the secondary market is in a correction phase at the moment, as per stakeholders, it continued with its upward trend slightly inching up in the trading week between April 28 and May 2. The market has been continuously rising since last six weeks.
As per Prakash Rajhaure, an independent share market analyst, market is in a correction mode at present and was guided by hydropower and life insurance subgroups in review week. He also added that since banks and financial institutions have started disbursing loans to share investors, the market has witnessed an increment.
“The central bank has also started showing concern regarding the market and is trying to assist as much as possible.”
As a result, Nepal Stock Exchange (Nepse) index went up by 0.17 per cent or 2.27 points in the review period. However, sensitive index fell by 0.66 per cent or 1.85 points to 277.82 points and float index remained the same at 95.44 points.
In the review period, weekly turnover fell by 11.87 per cent as compared to previous week to Rs 4.41 billion. In previous week the market witnessed turnover of Rs five billion. However, daily average turnover went up by Rs 1.10 billion, which is an increment of 10.16 per cent in comparison to previous week when it stood at Rs one billion.
Trading of shares of mutual funds rose by 12.37 per cent as compared to the previous week to Rs 11.17 million. In the previous week, mutual funds witnessed turnover of Rs 11.65 million.
However, trading of promoter shares declined by 19.84 per cent to Rs 138 million, which stood at Rs 172.16 million last week. Meanwhile, the total paid-up value of listed shares increased by 0.31 per cent to Rs 414.17 billion, which previously stood at Rs 412.89 billion.
In the review week, secondary market witnessed only four days of transactions due to a public holiday on May 1, which is celebrated as Labour Day.
The secondary market had opened at 1,292.12 points on Sunday and soared by 22.39 points by end of the day. However, it fell by 4.20 points the next day. It again descended by 11.71 points on Tuesday and by 4.21 points on Thursday to close the week at 1,294.39 points.
In the review week, banking, development banks and finance subgroups landed in the red zone. Banking sub-index fell by 2.79 per cent or 33.41 points to 1,164.28 points due to share price of Standard Chartered dropping by Rs 33 to Rs 690.
Moreover, development banks subgroup also went down by 1.34 per cent or 21.31 points to 1,563.66 points. Likewise, finance sub-index inched down by 0.97 per cent or 6.17 points to 625.29 points.
Meanwhile, hydropower subgroup led pack of gainers, soaring by 9.03 per cent or 102.06 points to 1,232.24 points as share price of Chilime Hydropower Company rose by Rs 66 to Rs 577. Similarly, life insurance sub-index also rose by 8.52 per cent or 539.61 points to 6,868.95 points with share price of Life Insurance Co Nepal soaring by Rs 166 to Rs 1,875.
Likewise, the hotels subgroup increased by 4.65 per cent or 86.65 points to 1,944.61 points with share price of Soaltee Hotel up eight rupees to Rs 230.
Moreover, manufacturing expanded by 4.27 per cent or 88.81 points to 2,163.85 points with share price of Shivam Cement rising by Rs 34 to Rs 344. Likewise, microfinance sub-group also accelerated by 4.06 per cent or 60.54 points to 1,549.29 points. It was due to Global IME Laghubitta Bittiya Sanstha’s share price going up by Rs 40 to Rs 1,200, among others.
Meanwhile, non-life insurance subgroup increased by 3.42 points to 192.6 points to rest at 5,824.07 points. Trading sub-index also went up by 0.77 per cent or 0.68 point to 245.49 points and others subgroup inched up by 0.09 per cent or 0.71 point to 717.74 points.
In review week, Nepal Bank was leader in terms of weekly turnover with Rs 485.27 million.
It was followed by Nepal Life Insurance with Rs 380.8 million, Chhimek Laghubitta Bikas Bank with Rs 161.92.81 million, Prime Commercial Bank with Rs 119.75 million and NMB Bank with Rs 115.21 million.
In terms of weekly trading volume, Nepal Bank again took the lead with 1,511,000 of its shares changing hands. Prabhu Bank with 371,000 shares, Civil Bank with 351,000 shares, Janata Bank with 342,000 shares and Upper Tamakoshi Hydropower with 339,000 shares were the other top firms to record high trading volume.
Meanwhile, Nepal Life Insurance topped in terms of number of transactions with 3,206 deals. It was followed by Nepal Bank with 2,097, Upper Tamakoshi with 1,856, Chhimek Laghubitta Bikas Bank with 1,119 and Prabhu Bank with 1,042 transactions.
A version of this article appears in print on May 05, 2019 of The Himalayan Times.
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