Nepse rebounds on positive cues

Kathmandu, December 12

News and speculations related to the current crisis and possible breakthrough in negotiations with the agitating Madhes-based political parties propelled the Nepal Stock Exchange (Nepse) index to rise to 1,119.35 points. This was a week-on-week gain of 46.41 points or 4.32 per cent from December 6 to 10.

Explaining that in our context, the stock market is mostly governed by political situation, Raj Kumar Timilsina, a stock market analyst said. “The Nepse index moved mostly in the upward trajectory based on positive political cues.”

Stating that Nepse will likely be northbound if issues of agitating parties are resolved, he said the current market movement is unlikely to affect long-term stock investors, although short-term traders may have had to bear losses.

Beginning the trading week at 1,072.94 points on Sunday, the benchmark index had surged by an impressive 29.9 points by the day’s closing and continued the growth trajectory by adding another 5.1 points on Monday. On Tuesday, Nepse dipped by a marginal 0.71 point, but the optimism related to breakthrough in talks with the agitating parties more than helped recover the loss the very next day as the local bourse gained 15.56 points. On Thursday, however, Nepse shed 3.44 points as short-term traders rushed to book profits.

All in all, 2.98 million shares of 154 companies worth Rs 1.86 billion were traded through 14,253 transactions during the week. The traded amount was 27.50 per cent higher than the preceding week when 10,863 transactions of 2.86 million shares of 147 listed firms that amounted to Rs 1.46 billion had been undertaken.

The sensitive index rose by 9.69 points to 241.43 points. Likewise, the float index also increased by 3.51 points to 79.83 points, during the review period.

Whereas trading continued to remain constant at 207.97 points, others was the only subgroup to record a loss of 0.31 per cent to 757.77 points as stock value of Nepal Telecom dipped by two rupees to Rs 645.

Meanwhile, similar to the previous week, development banks led the pack of gainers, surging by 7.75 per cent to 999.58 points. Nagbeli’s stock value went up by Rs 688 to Rs 2,703, Chhimek’s by Rs 351 to Rs 2,046 and Swabalamban’s by Rs 204 to Rs 2,315.

Adding to last week’s gain of 3.45 per cent, insurance subgroup went up by 6.29 per cent to 4,756.88 points. Share price of National Life Insurance rose by Rs 159 to Rs 2,262 and Life Insurance Co Nepal by Rs 195 to Rs 3,365, among others.

Finance climbed 5.95 per cent to 581.32 points. Citizen Investment Trust’s stock value jumped by Rs 640 to Rs 4,500, ILFCO’s by Rs 145 to Rs 463 and ICFC’s went up by Rs 16 to Rs 214.

Banking, which has a majority stake in the market capitalisation of the country’s only secondary market, ascended by 4.40 per cent to 1,034.16 points. Everest Bank’s share price rose by Rs 150 to Rs 2,110, NIC Asia’s by Rs 101 to Rs 939 and Sanima Bank’s by Rs 27 to Rs 670, among others.

Hotels gained 1.72 per cent to 1,787.85 points on the back of Soaltee’s shares landing at Rs 425, up seven rupees and Oriental’s closing at Rs 401, up Rs 16.

Hydropower increased by 1.64 per cent to 1,942.91 points with Chilime’s stock price up Rs 45 to Rs 1,370.

Unilever’s share price rose by Rs 400 to Rs 26,100, which in turn nudged manufacturing up 1.11 per cent to 1,883.18 points.

NIC Asia Bank topped the charts with highest turnover of Rs 142.21 million, followed by Nepal Life Insurance Co with Rs 95.96 million, Chhimek Laghubitta Bikas Bank with Rs 95.14 million, Bank of Kathmandu with Rs 92.25 million and Diprox Development Bank with Rs 71.48 million.

Nabil Balanced Fund-I retained its top position in terms of number of shares traded with 219,000 of its scrips changing hands. Similar to the previous week, Api Power Co was the forerunner among firms in terms of most number of transactions, clocking 3,247 dealings.