Nepse in eccentric mode

KATHMANDU: Nepse continued rallying this week too, closing at 718.62 points — 41.98 points higher than the closing of last week’s 676.64 points.

This week saw a whopping rise on Wednesday by 25.17 points — and a fall — on Thursday by 21.27 points as the sole secondary market went from green to the red zone.

Some, market gurus attributed the change to the political change — formation of a liberal government — but others suspect the ‘unnatural rise and fall’ of Nepse was due to a handful of investors who are taking advantage by spreading rumours in the transition period.

The ‘unnatural growth’ could not justify the transaction amount as the total transaction amount — as against the rise in Nepse — has gone down by 13.12 per cent to Rs 278.4 million against last week’s rise of 51.70 points to Rs 285.1 million. The contribution of Group-A companies — the blue-chip shares — also went down by 67.78 points as against last week’s 76.19 per cent.

However, shareholders of commercial banks, hydropower companies, development banks, others and trading sub-groups earned profits as shares of these sub-groups witnessed an encouraging growth this week.

Of the nine sub-groups, eight gained to push Nepse up. An exception was the finance companies sub-group that lost 4.50 points to drop to 761.87 points from last week’s closing of 766.37 points.

The commercial banks sub-group gained a whopping 60.44 points to reach 736.55 points followed by hydropower sub-group which gained 43.95 points to rise to 888.66 points. Similarly, developing banks sub-group also surged by 32.69 points to reach 756.52 points and the others sub-group — with the help of Nepal Telecom shares — flared 25.24 points up to reach 716.67 points. The trading sub-group gained 10.12 points to reach 281.78 points and insurance, manufacturing and hotel sub-groups gained 7.83 points to reach 650.78 points, 2.86 points to reach 434.32 points and 1.89 points to reach 365.00 points, respectively.

Standard Chartered Bank Nepal led the rally as it topped the chart in terms of trading amount at Rs 60.66 million. However, Global Bank topped the chart in terms of share units traded and number of transactions with 30,000-units of Global bank changing hands in 468 transactions.

Standard Chartered Bank Nepal (with Rs 60.66 million), Bank of Kathmandu (with Rs 33.72 million), Nepal SBI Bank (with Rs 27.24 million), Nabil Bank (with Rs 23.76 million) and Global Bank (with Rs 17.88 million) were the top performers of this week.

The 78-scrip sensitive index — considered blue chip shares in the domestic market — also gained 12.69 points to reach 190.31 points. The float index — calculated on the basis of real transactions — also gained 3.99 points to close at 68.65 points from last week’s closing of 64.64 points.

The week started in the green on Sunday as Nepse gained 11.423 points to rise to 688.07 points from last week’s closing of 676.64 points. The rally continued on Monday as Nepse surged by 13.44 points. On Tuesday also, Nespe registered a growth of 13.21 points to close the day’s trading at 714.72 points.

Wednesday witnessed the biggest growth in the last couple of months as Nepse flared up by 25.17 points to rise to 739.89 points but the week ended in the red with Nepse losing 21.27 points to drop to 718.62 points.

The sole secondary market’s five-day trading saw over 2-million-unit bonus shares being listed for transaction.