Kathmandu, December 7

As banks and financial institutions (BFIs) have started providing loans to share investors, confidence among investors has increased which has consequently led to Nepal Stock Exchange (Nepse) going on a bullish run in the trading week of December 1 to 5. Investors have claimed that in recent days it has become relatively easier to obtain loans for investment in the secondary market.

As a result Nepse has turned positive, however, as per investors government has not done anything concrete to lift the market.

Share investors have time and again complained that the government has not listened to their genuine concerns which have remained unresolved since long. “We have been raising issues with the government on how the secondary market can be made better since the last two years but the government has always turned a deaf ear,” said Radha Pokharel, chairperson of Nepal Pujibazar Laganikarta Sangh.

She also accused government for delaying appointment of a chairperson at Securities Board of Nepal — regulatory body of share and commodities market.

“Due to absence of a chairperson at SEBON we have not been able to table our concerns.”

Despite some issues still plaguing market, Nepse index was in an upward trend in review week and rose by 1.72 per cent or 19.13 points to 1,131.92 points. Similarly, sensitive index ascended by 0.86 per cent or 2.11 points to 248.77 points and float index rose by 1.78 per cent or 1.49 points to 84.27 points.

The weekly turnover also increased by 3.89 per cent as compared to the previous week to Rs 1.37 billion. In the previous week, the market had witnessed transactions worth Rs 1.32 billion. The trading volume, however, went down to 4.59 million stocks changing hands this week from 5.15 million in the previous week.

The secondary market had opened on Sunday at 1,112.79 points. It increased by 0.07 point by the end of the trading day. It, however, dipped by 0.86 point on Monday. However, the index shot up by 3.75 points on Tuesday, 8.73 points on Wednesday and 7.45 points on Thursday to close the week at 1,131.92 points.

In the review week, all the indices were in the green zone.

Life insurance sub-index was the biggest gainer of the week, climbing by 8.57 per cent or 425.26 points to 5,378.10 points.

It was due to the share price of Nepal Life Insurance Co surging by Rs 86 to Rs 890. Similarly, microfinance subgroup ascended by 4.34 per cent or 64.35 points to 1,545.19 points with the share price of Global IME Laghu Bittiya Sanstha up by Rs 39 to Rs 784.

The non-life insurance soared by 4.29 per cent or 170.20 points to 4,140.50 points due to the share price of Everest Insurance climbing up Rs 14 to Rs 224. Likewise, hydropower increased by 2.41 per cent or 21.98 points to 933.41 points and others sub-index edged up by 1.42 per cent or 9.15 points to 649.33 points.

Moreover, hotels sub-index went up by 1.32 per cent or 23.13 points to 1,770.04 points.

The mutual fund subgroup also rose by 1.21 per cent or 0.11 point to 9.23 points and finance subgroup hiked by 0.84 per cent or 4.67 points to 558.96 points.

Similarly, banking subgroup went up by 0.51 per cent or 5.20 points to 1,026.41 points and trading rose by 0.45 per cent or 2.06 points to 451.95 points.

Likewise, manufacturing subgroup expanded by 0.40 per cent or 8.93 points to 2,228.45 points and development banks also inched up by 0.26 per cent or 4.20 points to 1,533.84 points.

In the review week, Nepal Life Insurance Co was the leader in terms of weekly turnover with Rs 105.20 million. It was followed by NMB Bank with Rs 95.29 million, NIC Asia Bank with Rs 65.14 million, Janautthan Samudayik Laghubitta Bikas Bank with Rs 46.49 million and Nabil Bank with Rs 45.98 million.

In terms of weekly trading volume, NMB Bank was the forerunner with 247,000 of its shares changing hands. It was followed by NIC Asia Bank with 160,000 shares, Nepal Life Insurance Co with 122,000 shares, Nepal Bank with 117,000 shares and Century Commercial Bank with 106,000 shares.

Meanwhile, Nepal Life Insurance Co topped in terms of number of transactions with 1,137 transactions. It was followed by Rashuwagadhi Hydropower with 1,108, NMB Bank with 1069, Sanjen Jalavidhyut with 1,067 and Upper Tamakoshi with 546 transactions.