Positive political cues limit Nepse’s loss

Kathmandu, September 21

Positive political cues limited the week-on-week loss at the Nepal Stock Exchange (Nepse) to 0.22 per cent in the trading week between September 15 and 19.

Speaking at a programme on September 16, Finance Minister Yubaraj Khatiwada had said the time has come to make the financial sector more vibrant and urged investors to invest in the secondary market. He had cited political stability and easy financing by banks and financial institutions as the key reasons that investors should capitalise on. Following his comments, the local bourse had witnessed a buying spree.

However, Uttam Aryal, chairperson of Investors Association of Nepal, claimed that the share market has gone up for a few days as the government has extended the starting date of anti-money laundering investigation in the secondary market by three months. “It was sheer coincidence that the finance minister’s speech and the government’s notice came around the same time.”

According to him, investors’ sentiment continues to be weighed down by the government’s inability to resolve various issues, including capital gains tax calculation method in share transaction.

The weekly turnover surged by 21.3 per cent as compared to the previous week to Rs 1.89 billion.

In the preceding week, the market had recorded transactions worth Rs 1.56 billion.

However, the trading volume dropped to 6.58 million stocks changing hands this week against 6.65 million in the previous week.

The benchmark index had opened on Sunday at 1,157.88 points. It had dropped by 17.86 points by the end of the trading day. The market again dipped by 16.16 points on Monday.

However, the market more than recovered the loss of the first two trading days by advancing 26.91 points on Tuesday and jumping 22.68 points on Wednesday. However, the optimism could not last and the market retreated 18.12 points on Thursday to close the week at 1,155.30 points.

The sensitive index fell by 0.62 per cent or 1.58 points to 252.21 points and float index also dipped by 0.16 per cent or 0.14 point to 85.55 points.

In the review week, trading, manufacturing, hotels, microfinance, hydropower, finance and development banks sub-indices landed in the green zone.

The trading subgroup was the biggest gainer of the week, surging by 3.96 per cent or 10.99 points to 287.88 points with the share price of Bishal Bazar Company rising by Rs 28 to Rs 1,435.

Close on its heels, manufacturing sub-index jumped 3.23 per cent or 78.48 points to 2,503.79 points because of share value of Shivam Cements closing at Rs 572, up Rs 50.

Hotels subgroup went up by 1.91 per cent or 35.94 points to 1,910.53 points and microfinance sub-index gained 1.32 per cent or 19.47 points to 1,487.45 points.

Hydropower subgroup ascended by 0.69 per cent or 6.66 points to 962.19 points. Finance sub-index inched up 0.53 per cent or 3.02 points to 573 points and development banks rose by 0.14 per cent or 2.20 points to 1,567.01 points.

Conversely, mutual funds dropped by 1.36 per cent or 0.13 point to 9.42 points and others sub-index lost 1.08 per cent or 6.98 points to 638.74 points.

Banking subgroup slipped by 0.72 per cent or 7.77 points to 1,058.42 points. Life insurance went down by 0.55 per cent or 28.45 points to 5,118.40 points and non-life insurance shed 0.21 per cent or 9.35 points to 4,397.96 points. In the review week, Shivam Cements was the leader in terms of weekly turnover with Rs 154.37 million.

It was followed by Siddhartha Bank with Rs 116.56 million, Nepal Bank with Rs 108.62 million, Nepal Life Insurance Co with Rs 95.01 million and Prabhu Bank with Rs 68.86 million.

A total of 360,000 shares of Siddhartha Bank changed hands in the week — the highest during the review period.

Nepal Bank with 343,000 shares, Rasuwagadhi Hydropower with 289,000 shares, Shivam Cements with 275,000 shares and Prabhu Bank with 261,000 shares rounded up the top five in this category.

Meanwhile, Rashuwagadhi Hydropower recorded most number of transactions — 3,791 transactions. It was followed by Sanjen Jalavidhyut with 3,393, Shivam Cements with 1,612, Siddhartha Bank with 1,163 and Nepal Life Insurance Co with 937 transactions.