Nepse index edges up 0.99pc
A slight dip in the country’s only secondary market starting mid-week limited the weekly gain of Nepal Stock Exchange (Nepse) index to 17.87 points or 0.99 per cent in the week of September 4 to 8.
Investor sentiment has turned bullish in recent days after the securities market regulator scrapped the committee that had been formed to look into possible flow of illicit funds in the secondary market. Even as Securities Board of Nepal (SEBON) had time and again clarified that genuine investors need not worry, the move had heavily weighed on the market movement.
Moreover, the impressive performance of commercial banks and insurance companies in the past fiscal has further boosted investor confidence, according to Bachchu Ram Rimal, general secretary of Nepal Investors Forum, who expects the market movement to remain fairly stable in the coming days in view of the market maturity.
“Timely election of local bodies, which would point towards political stability and further automation of the secondary market could help propel Nepse to newer heights,” Rimal opined.
Starting the trading week at 1,805.18 points on Sunday, the benchmark index had gone up by 14.65 points by the day’s closing. On Monday, Nepse remained northbound by adding 19.07 points. However, starting Tuesday, the local bourse reversed course. Nepse fell 4.1 points on Tuesday, dropped 9.97 points on Wednesday and shed 1.78 points on Thursday to rest at 1,823.05 points for the week.
In total, 11.67 million shares of 163 companies worth Rs 8.52 billion were traded through 41,805 transactions during the trading week. The traded amount was 23.33 per cent higher than the preceding week when 33,932 transactions of 9.71 million scrips of 157 firms that amounted to Rs 6.91 billion had been undertaken.
The sensitive index, which gauges the performance of class ‘A’ stocks, rose by 4.09 points or 1.04 per cent to 395.57 points. Similarly, the float index that measures the performance of shares actually traded also went up by 1.75 points or 1.3 per cent to 136.15 points.
Among the subgroups, trading — like in the previous weeks — remained stationary at 202.79 points. Apart from manufacturing, others and finance, all the subgroups witnessed gains during the review period.
The hydropower subgroup led the pack of gainers, surging by 64.03 points or 2.7 per cent to 2,435.38 points. Chilime’s share value went up by 4.57 per cent to Rs 1,328, Api’s by 4.46 per cent to Rs 632 and Ridi’s by 6.67 per cent to Rs 320, among others.
Hotels managed to recoup some of the loss of the previous week by ascending 53.54 points or 2.48 per cent to 2,207.42 points. Even as Taragon Regency’s share price dropped by 4.18 per cent to Rs 275, the loss was offset due to Soaltee rising by three per cent to Rs 412 and Oriental gaining 4.2 per cent to Rs 620.
Banking — the share market heavyweight — climbed by 22.48 points or 1.3 per cent to 1,747.19 points. Shareholders of Sunrise saw their stock price surge by 9.11 per cent to Rs 958, while those of Nabil gained 3.09 per cent as its share price closed at Rs 2,438 for the week.
Adding to the previous week’s gain of 2.67 per cent, insurance subgroup went up by 100.83 points or 1.14 per cent to 8,945.35 points. This was on the back of insurance companies like Nepal Insurance surging by 7.92 per cent to Rs 1,280 and Prudential up 4.37 per cent to Rs 1,649.
Development banks edged up 12.14 points or 0.64 per cent to 1,894.35 points. Share value of Swabhalamban went up by 2.87 per cent to Rs 2,685 and that of Deprosc by 1.13 per cent to Rs 3,120.
Conversely, manufacturing — the subgroup that had recorded the highest gain of 6.6 per cent in the previous week — slumped by 101.83 points or 3.93 per cent to 2,489.88 points during the review period. The sub-index was weighed down as Bottlers Nepal (Tarai)’s share price plunged by 14.86 per cent to Rs 5,551 and that of Unilever Nepal dropped by two per cent to Rs 33,761.
Likewise, others dipped 2.32 points or 0.29 per cent to 785.21 points and finance shed 1.02 points or 0.12 per cent to 847.99 points.
Meanwhile, commercial banks occupied the top five positions in terms of weekly turnover this time around. Nepal Bangladesh retained its top position with Rs 768.82 million, followed by Nepal Investment Bank with Rs 475.85 million, Sunrise Bank with Rs 461.58 million, Everest Bank with Rs 433.94 million and Siddhartha Bank with Rs 373.03 million.
NMB Sulav Investment Fund – I was the forerunner with regards to trading volume, with 1.43 million of its scrips changing hands. With 6,682 transactions, Nepal Investment Bank held fast onto its title as the firm with most number of transactions.
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