Nepse Market update

Kathmandu, June 4

The index of Nepal Stock Exchange (Nepse) bobbed throughout the week — from May 29 to June 2 — slipping by 6.97 points or 0.46 per cent week-on-week to land at 1,518.12 points.

While the investor sentiment did not seem as buoyant as in the previous week, the daily movement was limited to single digit throughout the week.

On Sunday, the benchmark index opened at 1,525.09 points and had shed 2.84 points by the day’s closing. On Monday and Tuesday, Nepse index inclined by 4.71 points and 5.16 points, respectively. However, profit-booking caused the local bourse to drop 8.56 points on Wednesday and another 5.44 points on Thursday.

Altogether, 10.03 million shares of 148 companies that amounted to Rs 5.95 billion were traded through 27,634 transactions during the week.

The traded amount was 16.63 per cent less than the preceding week when 28,880 transactions of 14.67 million scrips of 147 firms worth Rs 7.15 billion had been undertaken.

The sensitive index, which gauges the performance of class ‘A’ stocks, fell 1.98 points or 0.60 per cent to 328 points. Likewise, the float index that measures the performance of shares actually traded also dipped by 0.81 points or 0.73 per cent to land at 110.37 points during the review period.

Whereas trading remained constant at 201.38 points, four of the subgroups landed in the green while four recorded losses.

Hydropower subgroup led the market rally, surging by 9.91 per cent to 2,500.5 points. Chilime’s share value soared by Rs 119 to Rs 1,419, and that of Api by Rs 45 to Rs 710, among others.

Manufacturing more than recovered previous week’s loss of 2.92 per cent by ascending 7.42 per cent to 2,313.34 points. This was on the back of Unilever Nepal’s stock price rising by whopping Rs 3,079 to Rs 34,500.

Hotels also managed to salvage some of the drop of the precious week. The sub-index went up by 2.93 per cent to 1,920.68 points. Solatee gained Rs 11 to Rs 357, Taragaon Regency added five rupees to Rs 235 and Oriental up Rs 16 to Rs 530.

Similarly, others subgroup rose by 1.69 per cent to 777.73 points because of Nepal Telecom’s share value going up by Rs 11 to Rs 662.

On the other hand, development banks fell 1.79 per cent to 1,513.41 points. Swabhalamban dropped by Rs 40 to Rs 2,680, Chhimek by Rs 90 to Rs 2,060 and Sana Kisan by Rs 33 to Rs 1,980.

Banking — the subgroup with the largest stake in the market capitalisation of the country’s only secondary market — dropped 1.4 per cent to 1,396.8 points. Everest Bank’s stock price dropped by Rs 61 to Rs 2,879, that of Nepal Investment by Rs 45 to Rs 1,028, among others.

After posting an impressive gain of 7.85 per cent in the past week, insurance sub-index dropped by 1.37 per cent to 7,626.88 points. Nepal Life was down Rs 78 to Rs 3,796 and National Life took a beating by Rs 120 to Rs 2,960.

Finance dipped by 0.98 per cent to 723.87 points.

Meanwhile, Sanima Bank took the lead in terms of turnover with Rs 418.20 million, followed by Citizens Bank International with Rs 398.18 million, Chilime Hydropower with Rs 341.05 million, National Hydropower with Rs 319.29 million and Nepal Bangladesh Bank with Rs 200.77 million.

National Hydropower was the forerunner in terms of number of shares traded, with 1.59 million of its scrips changing hands. Citizens Bank International topped the chart in regard to number of transactions — 2,059.