Kathmandu, September 7
Rumours about the government’s plan to tax parental property added to the woes of share investors already rattled by the government’s unwillingness to resolve long disputed capital gains tax (CGT) in share transaction. Consequently, the secondary market recorded seventh week-on-week loss between September 1 and 5.
“The investor sentiment has been further dampened by the rumours that the government is preparing to introduce additional taxes on the citizens,” explained Uttam Aryal, chairman of Investors Association of Nepal.
However, he expressed hope that the bearish run will come to a halt soon as the central bank is expected to soon amend the Monetary Policy in favour of the share market and banks and financial institutions.
In the review week, Nepal Stock Exchange (Nepse) index fell by 0.45 per cent or 5.35 points to 1,191.07 points. Sensitive index also went down by 0.51 per cent or 1.35 points to 259.90 points and float index dipped by 0.15 per cent or 0.14 point to 87.93 points.
On the other hand, the weekly turnover increased by 19.53 per cent as compared to the previous week to Rs 1.94 billion. In the previous week, the market had witnessed transactions worth Rs 1.62 billion. Similarly, the trading volume also increased to 7.04 million stocks changing hands this week from 6.02 million in the preceding week.
Trading of mutual funds shares went down by 31.2 per cent against the previous week to Rs 3.33 million. In the previous week, the mutual funds had witnessed turnover of Rs 4.84 million.
The secondary market had opened on Sunday with the benchmark index at 1,196.42 points. It had dropped by 11.63 points by the end of the trading day. Nepse index plunged by 14.45 points on Monday. However, the local bourse reversed course over the next two days — surging by 20.57 points on Tuesday and adding another 3.87 points on Wednesday. The optimism could not sustain, however, as Nepse again shed 3.70 points on Thursday to close the week at 1,191.07 points.
In the review week, development banks and banking subgroups managed to land in the green zone. Trading subgroup remained constant at 282.13 points.
The development banks sub-index increased by 0.33 per cent or 5.18 points to 1,589.08 points and banking subgroup also ascended by 0.21 per cent or 2.32 points to 1,090.25 points.
At the other end of the spectrum, hotels sub-index was the biggest loser of the week, plunging by 2.12 per cent or 42.37 points to 1,958.89 points due to share price of Soaltee down six rupees to Rs 222.
Others subgroup lost 2.10 per cent or 14.41 points to land at 671.48 points, with share value of Nepal Telecom dropping by Rs 16 to Rs 651.
Moreover, life insurance sub-index slumped by 1.88 per cent or 103.36 points to land at 5,388.44 points. The hydropower subgroups fell by 1.74 per cent or 17.70 points to 996.87 points and manufacturing sub-index descended by 1.57 per cent or 39.48 points to 2,476.03 points.
The finance subgroup slipped by 0.60 per cent or 3.51 points to 577.18 points and mutual funds sub-index went down by 0.51 per cent or 0.05 point to 9.73 points.
The microfinance subgroup dipped by 0.34 per cent or 5.15 points to 1,505.60 points and non-life insurance sub-index inched down by 0.05 per cent or 2.48 points to 4,636.15 points.
In the review week, Machhapuchchhre Bank was the leader in terms of weekly turnover with Rs 110.20 million. It was followed by Nepal Life Insurance Co with Rs 96.16 million, Nepal Bank with Rs 94.99 million, Kumari Bank with Rs 59.99 million and Shivam Cements with Rs 57.92 million.
In terms of weekly trading volume too Machhapuchchhre Bank was the forerunner with 432,000 of its shares changing hands. Nepal Bank with 299,000 shares, Kumari Bank with 296,000 shares, Prabhu Bank with 220,000 shares and Api Power Company with 207,000 shares rounded up the top-five in this category.
Meanwhile, Sabaiko Laghubitta Bittiya Sanstha topped in terms of number of transactions with 5,194 transactions. It was followed by Sanjen Jalavidhyut with 2,896, Rasuwagadhi Hydropower with 2,880, Nepal Life Insurance Co with 1,028 and Upper Tamakoshi Hydropower with 1,026 transactions.
A version of this article appears in print on September 08, 2019 of The Himalayan Times.
KATHMANDU, SEPTEMBER 25 The holy book of 'Pragya Paramita' (Perfection of Wisdom) being inscribed in golden letters by guthi members for its preservation at the Golden Temple in Lalitpur on September 24, 2020. Thursday. The holy book contains transcriptions of Buddhist scriptures and is rewritten Read More...
KATHMANDU, SEPTEMBER 25 Read More...
Kevin De Bruyne, Robert Lewandowski and Manuel Neuer have been short-listed for the UEFA men's Player of the Year award, European football's governing body said on Wednesday. Lewandowski guided Bayern Munich to their sixth Champions League title, finishing as the competition's top scorer with Read More...
KATHMANDU, SEPTEMBER 24 The number of children living in multi-dimensional poverty has soared to approximately 1.2 billion due to the impact of the COVID-19 pandemic, according to a new analysis published by UNICEF and Save the Children today. This is a 15 per cent increase in the number of ch Read More...
BHAIRAHAWA, SEPTEMBER 24 One person died and five others went missing in landslides at different places in Palpa this morning. In Surangdanda, ward 2 of Rambha Rural Municipality, Motisara Gaha, 27, died when a landslide buried his home. Similarly, in Phoksingkot of the same ward, five persons Read More...
DHANGADI, SEPTEMBER 24 Schools, which had remained shut for long due to the coronavirus pandemic, have started in-person classes in different districts of Sudurpaschim Province. The schools were closed for the last six months after the government imposed nationwide lockdown to stop the virus s Read More...
KATHMANDU, SEPTEMBER 24 Hundreds of students, mostly from public schools, across the country continue to be deprived of education due to lack of their access to electronic mediums like the internet, television and radio. The Ministry of Education has been encouraging educational institutions t Read More...
KATHMANDU, SEPTEMBER 24 Minister of Foreign Affairs Pradeep Kumar Gyawali urged member states of South Asian Association for Regional Cooperation to explore all viable options to hold the 19th SAARC Summit. Delivering his opening remarks at an informal meeting of the SAARC Council of Ministers Read More...