Nepse recovers slightly
The domestic market witnessed massive volatility in the week — between August 7 and 11 — with the Nepal Stock Exchange (Nepse) index recording a slight recovery of 0.35 per cent or 6.27 points to settle at 1,774.87 points.
Extending the previous week’s bear-run, the benchmark index had shed 3.88 points on Sunday to close at 1,764.72 points. On Monday, the domestic stock index plunged by 88.81 points or over five per cent prompting the share market operator to halt trading for the day at around 1:30pm, one-and-a-half hours ahead of the usual closing time. The massive dive resulted in Nepse retreating below the 1,700-point threshold.
However, on Tuesday, investor sentiment got a major boost on the news that Securities Board of Nepal (SEBON) had scrapped a committee formed to look into illicit flow of funds in the secondary
market. Consequently, the local bourse nearly recovered the previous day’s loss by surging 84.51 points or 5.04 per cent to rest at 1,760.42 points for the day. Owing to the massive buying pressure, the trading in the country’s sole secondary market had been suspended at 12:14pm for the day.
Nepse continued its upward trajectory on Wednesday, as the benchmark index gained 19.15 points. However, the local bourse dipped by 4.7 points on Thursday as short-term investors sought to book profits.
Talking to The Himalayan Times earlier in the week, stock analysts had said the drop in the benchmark index in the past week and in the beginning of the week was because of confusion surrounding the SEBON committee. As the securities market regulator disbanded the committee on Monday evening, investors swarmed to take advantage of the reduced share prices.
In total, 10.71 million shares of 154 companies worth Rs 6.06 billion were traded through 31,402 transactions during the week. The traded amount was 22.28 per cent less than the preceding week when 36,390 transactions of 17.22 million scrips of 152 firms that amounted to Rs 7.79 billion had been undertaken.
The sensitive index, which gauges the performance of class ‘A’ stocks, rose 0.48 per cent or 1.83 points to 382.78 points. Similarly, the float index that measures the performance of shares actually traded also inched up 0.36 per cent or 0.47 points to 131.84 points.
Trading was the only subgroup to remain stationary at 202.79 points during the review period. While majority of the subgroups recorded gains, hydropower, manufacturing and finance subgroups dipped marginally.
After plunging by 8.78 per cent in the previous week, hotels led the gainers this time around. The gain was, however, insufficient to recoup the loss as the subgroup rose by 1.75 per cent or 37.54 points to 2,179.83 points.
Development banks inched up 0.75 per cent or 13.74 points to 1,847.26 points; others edged up 0.57
per cent or 4.63 points to 815.58 points; banking gained 0.41 per cent or 6.77 points to 1,674.02 points; and insurance landed at 8,592.25 points, up 33.23 points or 0.39 per cent.
Conversely, hydropower dropped 0.82 per cent or 21.31 points to 2,573.15 points; manufacturing fell 0.82 per cent or 20.9 points to 2,535.12 points; and finance shed 0.74 per cent or 6.37 points to 858.91 points.
Meanwhile, Nepal Bangladesh Bank recorded the highest turnover of Rs 475.2 million, followed by Nepal Bank with Rs 430.35 million, Siddhartha Bank with Rs 349.03 million, Everest Bank with Rs 231.02 million and Nepal Investment Bank with Rs 214.47 million.
Laxmi Value Fund – I retained its top position in terms of trading volume with 3.07 million of its shares changing hands. Nepal Investment Bank bagged title of most number of transactions of a single firm — 2,181.