The country’s sole secondary market witnessed a massive sell-off in the trading week between February 25 and 28, with the Nepal Stock Exchange (Nepse) index plunging by 40.99 points or 2.95 per cent to retreat below the psychological level of 1,350 points.
According to share market analysts, the market movement recently has been governed by short-term investors looking for quick gains, which has added to selling pressure every time the market situation seems to be improving. Consequently, Nepse’s total market capitalisation dropped to Rs 1.57 trillion by the end of the trading week, compared to Rs 1.62 trillion in the preceding week.
Altogether, 4.53 million shares of 174 companies that amounted to Rs 1.96 billion were traded through 18,075 transactions during the week. The traded amount was, nevertheless, 15.04 per cent higher than last week when 18,604 transactions of 4.25 million shares of 176 firms worth Rs 1.71 billion had been undertaken.
Starting the week at 1,386.98 points on Sunday, the benchmark index had dropped by 12.25 points by the day’s closing. Nepse index remained southbound on Monday, recording a fall to 1,358.95 points. On Tuesday, the local bourse inched up by 5.86 points, but saw the little gain wiped out as it descended by 18.82 points to close the week at 1,345.99 points on Wednesday. The share market remained closed on Thursday, as the country celebrated Fagu Purnima.
In tandem with the Nepse index, the sensitive index fell by 2.68 per cent or 7.87 points to 285.38 points. Similarly, the float index slipped by 2.96 per cent or the same points to 96.89 points.
Akin to the previous week, every single subgroup landed in the red during the review period.
Insurance subgroup led the pack of losers, taking a dive of 4.59 per cent or 321.61 points to 6,677.35 points. The sub-index was weighed down by share value of insurance companies like Rastriya Beema plunging by 10.53 per cent to Rs 12,007 and that of Prime Life falling by 7.31 per cent to Rs 1,483.
Hydropower slumped by nearly 4.3 per cent or 74.89 points to 1,667.22 points, weighed down by Chilime losing 2.91 per cent to Rs 825, and Sanima Mai by 6.89 per cent to Rs 365.
Microfinance plunged by 3.92 per cent or 64.61 points to 1,584.92 points. Recording a drop of 3.88 per cent or 8.53 points, trading landed at 211.39 points.
Share price of commercial banks like Nabil declining by 2.75 per cent to Rs 1,060 and Standard Chartered taking a beating of 4.08 per cent to
Rs 940 caused banking subgroup — the share market heavyweight — to plummet by 2.63 per cent or 31.92 points to 1,182.97 points.
Hotels rested at 1,986.57 points, down 2.59 per cent or 52.83 points. Development banks fell by 2.58 per cent or 40.83 points to 1,538.71 points. Manufacturing retreated by 2.16 per cent or 53.22 points to 2,414.13 points. Even though Unilever Nepal limited its loss to a mere 0.59 per cent to close at Rs 27,800, Himalayan Distillery plummeting by 5.08 per cent to Rs 1,140 and Bottlers Nepal (Tarai) plunging by 6.96 per cent to Rs 6,666 dragged sub-index down.
Finance lost 2.13 per cent or 14.94 points to 686.49 points, whereas others fell by 1.49 per cent or 11.19 points to 741.20 points.
Nepal Life Insurance Co topped the chart in terms of weekly turnover and number of transactions, recording 1,826 transactions worth Rs 226.22 million. Prabhu Bank with Rs 183.54 million, Nepal Life Insurance Co (Promoter Share) with Rs 89.84 million, Prime Life Insurance Co with Rs 86.39 million and Rastriya Beema Co Ltd (Promoter Share) with Rs 82.31 million rounded up the top listed companies with highest turnover in the review period.
Prabhu Bank was forerunner in terms of trading volume, with 812,000 of its shares changing hands during the week.
|Unnati Microfinance Bittiya Sanstha||Ordinary||550,000|
A version of this article appears in print on March 04, 2018 of The Himalayan Times.