Nepal | September 29, 2020

Nepse index down by 33.77 points

Himalayan News Service
Share Now:

NepseKathmandu, January 20

Due to the fluctuating lending rates of banks and financial institutions the secondary market index took a plunge in the trading week between January 14 and 18. The Nepal Stock Exchange (Nepse) index fell by 33.77 points or 2.34 per cent to 1,406.52 points in the review period.

Along with the Nepse index, the sensitive and float indices also fell by more than two per cent. The sensitive index dropped by 2.25 per cent or 6.82 points to 296.86 points and the float index descended by 2.36 points or 2.28 per cent to 101.14 points.

The secondary market was open for only three days during the week. It remained closed on Monday due to public holiday of Maghe Sakranti and on Thursday due to Sonam Losar. The market index had slightly gone up the previous week, however during the three days of this week it closed in the red zone.

The benchmark index opened on Sunday at 1,440.29 points and closed at 1,431.1 points by the time of closing. The market declined to 1,413.71 points on Tuesday and further fell to 1,406.52 points on Wednesday.

Investors expect the market to change direction within the next few trading days because the internal and external factors that affect the market are positive. Nawaraj Subedi, chairman of Nepal Stock Market Investors Association, stated that the secondary market lost some shine last week because of the fear among investors of an increment in lending rates due to shortage of deposits in the banks and financial institutions.

“Data from commercial banks related to their credit to core capital cum deposit ratio has revealed that there is no shortage of funds in the banks. Moreover, a few banks have published information in some newspapers that they will provide loans at nine per cent which has created hope among the investors,” Subedi said. “Also, most political issues have been settled after the elections and this has helped develop a positive sentiment among share investors.”

Subedi also stated that the second trimester results of banks and financial institutions also have had a positive impact on investors. “The second quarter results of banks and financial institutions will be published soon and investors believe that they will be more positive than the result of the first quarter of this fiscal year,” he mentioned.

All the sub-indices were in the red zone during the trading week. The sub-index of class ‘A’ financial institutions plunged by 28.27 points or 2.27 per cent to 1,216.68 points. Stock market price of Everest Bank decreased by 9.65 per cent to Rs 833 per unit, that of Standard Chartered Bank fell by 5.03 per cent to Rs 1,000 per unit and share price of Nabil Bank descended by 2.9 per cent to Rs 1,039 a unit.

The sub-index of the insurance group plunged by 2.51 per cent or 187.19 points to 7,270.44 points. Likewise, sub-index of development banks decreased by 43.97 points or 2.72 per cent to 1,570.85 points. Similarly, sub-index of microfinance sector descended by 39.99 points or 2.29 per cent to 1,701.98 points and
the sub-index of finance companies fell by 16.62 points or 2.26 per cent to 719.12 points.

Similarly, sub-index of hydropower group dropped by 59.88 points or 3.12 per cent to 1,861.23 points. The sub-index of manufacturing sector plunged by 54.26 points or 2.16 per cent to 2,452.54 points and the sub-index of hotels fell by 39.06 points or 1.81 per cent to 2,113.51 points. Following this trend, sub-index of trading group also dipped by 2.87 points or 1.49 per cent to 189.53 points and the others group decreased by 16.25 points or 2.08 per cent to 766.83 points during the review period.

Altogether, 2.46 million shares of 170 companies worth Rs 2.09 billion were traded through 12,728 transactions during the week. The traded amount was 35.98 per cent less than the total weekly turnover of the previous week.

Sanima Mai Hydropower Company secured the top position in terms of total turnover with Rs 190.81 million. It was followed by Nabil Bank with Rs 53.99 million, Nepal Life Insurance with Rs 42.4 million, Standard Chartered Bank with Rs 38.71 million and National Life Insurance with Rs 27.88 million.

Sanima Mai Hydropower also topped the list in terms of trading volume of shares and number of transactions. A total of 447,000 unit shares of the company were traded through 1,184 transactions.


A version of this article appears in print on January 21, 2018 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Nepal COVID-19 Update: 1351 new cases, 742 recoveries, four fatalities recorded on Monday

KATHMANDU: Nepal’s Health Ministry, in its regular press briefing, shared the latest updates on coronavirus contagion from across the country, and government’s response to the health crisis. READ ALSO: Kathmandu Valley records 817 infections on Monday As of today, 998,407 tests throug Read More...

K-pop’s BLACKPINK drop teaser for title track ‘Lovesick Girls’ from debut album

KATHMANDU: K-pop’s most popular girl band BLACKPINK on September 28 announced Lovesick Girls, the title track of their debut full-length LP The Album. According to The Korea Times, the group's label YG Entertainment dropped a teaser poster on social media, announcing the title track, Lovesi Read More...

President issues three ordinances

KATHMANDU: President Bidya Devi Bhandari has issued three ordinances, including one related to prevention and control of acid and other harmful chemicals. The President issued these ordinances in accordance with Article 114 (1) of the Constitution of Nepal and on the recommendation of the Council Read More...

Nepal, Oman to sign labour agreement soon

KATHMANDU: Nepal's Ambassador to Oman, Sharmila Parajuli Dhakal paid a courtesy call on Labour Minister of Oman Dr Mahad bin Saeed bin Ali Baouin at latter’s office. Ambassador Dhakal congratulated Dr Mahad for his appointment to the post of Labour Minister of Oman. On the occasion, both o Read More...

Global K-pop sensation BTS to drop new album ‘BE’ on November 20

KATHMANDU: K-pop supergroup BTS have announced their new album titled BE, which they will be releasing on November 20. The group’s label Big Hit Entertainment took to the group's online fan community BTS Weverse on September 28 to make the announcement, reports The Korea Herald. Without el Read More...

Armenia and Azerbaijan step up fighting in fiercest clashes since 1990s

Each side says the other firing heavy artillery Worries resurface about South Caucasus stability Azerbaijan says six of its civilians killed Nagorno-Karabakh said 15 more of its soldiers killed YEREVAN/BAKU: Fighting between Armenia and Azerbaijan escalated sharply on Monday in a Read More...

Diogo Jota

Liverpool maintain 100% start with win over Arsenal

LIVERPOOL: Premier League champions Liverpool maintained their 100% start to the season with a 3-1 win against Arsenal at Anfield on Monday leaving them level on nine points with pacesetters Everton and Leicester City. The visitors took the lead through an Alexandre Lacazette strike but L Read More...

Fulham, Aston Villa, Ivan Cavaleiro, Matty Cash

Villa beat Fulham 3-0 to move into top four

LONDON: Aston Villa moved into the Premier League top four after they strolled to a 3-0 win at Fulham thanks to goals from Jack Grealish, Conor Hourihane and Tyrone Mings in a lopsided contest on Monday. The result left Villa, who narrowly avoided relegation last season, fourth on a maximu Read More...