The country’s sole secondary market witnessed a slight increase in the trading week between October 7 and 11 due to the positive financial statements published by banks and financial institutions (BFIs).
Experts say that investors are currently attracted to shares of BFIs with expectations that financial institutions will offer bonus shares, but they are not expecting the optimism to sustain.
“The current market movement hints at the possibility of the benchmark index dropping below 1,100 points in the future. This is because the ‘V’ shaped movement seen right now is technically unsustainable and the index should move in ‘U’ shaped direction for constant growth,” said Prakash Rajhaure, an independent stock market analyst.
“In the previous weeks, the market saw some fluctuations and it went up a bit, but we must wait till the beginning
of 2019 for the market to start rising continuously,” he added.
See-sawing over the five trading days of the week, Nepal Stock Exchange (Nepse) index ended up 0.07 per cent or 0.91 point week-on-week.
Similarly, sensitive index also went up by 0.30 per cent or 0.80 point to 261.04 points and the float index rose by 0.09 per cent or 0.08 point to 89.25 points.
The weekly turnover went down by 32.91 per cent to Rs 1.60 billion compared to total transaction amount of Rs 2.38 billion in the previous week. Likewise, the daily average turnover also dropped to Rs 320.25 million in the review period from Rs 477.37 million in the past week.
Moreover, number of shares traded slumped to 5.52 million in the week compared to 8.93 million in the previous week.
The secondary market had opened at 1,227.37 points on Sunday and dropped by 13.01 points by the end of the trading day. On Monday, the market rose by 6.16 points, however the local bourse again fell by 2.59 points the next day. On Wednesday, Nepse reversed course to inch up by 0.40 point and further jumped 9.95 points on Thursday to close the week at 1,228.28 points.
Others and banking were the only subgroups to land in the green zone with the trading sub-index witnessing no transaction in the review week.
The others subgroup went up by 1.71 per cent or 12.53 points to 745.56 points.
Banking — the subgroup with highest weightage in secondary market — increased by 0.45 per cent or 4.85 points to 1,083.41 points. Share value of NIC Asia was up by six rupees to Rs 431 and that of Standard Chartered by Rs 10 to Rs 700.
On the other hand, hotels subgroup plunged by 2.84 per cent or 52.33 points to 1,793.47 points, with share price of
Soaltee down seven rupees to Rs 238. The hydropower sub-index dropped by 1.32 per cent or 18.32 points to 1,364.67 points with Api losing nine rupees to Rs 234.
Life insurance sub-index fell by 1.27 per cent or 71.04 points to 5,504.65 points. Likewise, non-life insurance went down by 1.13 per cent or 65.05 points to 5,685.69 points. Share price of Everest Insurance decreased by Rs 31 to Rs 1,150.
Microfinance was down by 0.93 per cent or 13.79 points to 1,472.9 points and finance sub-index fell by 0.24 per cent or 1.47 points to 607.74 points.
Meanwhile, development banks subgroup descended by 0.17 per cent or 2.65 points to 1,473.55 points, as the share price of Green Development Bank fell by three rupees to Rs 112. Manufacturing dipped by 0.08 per cent or 1.96 points to 2,316.98 points.
In the review week, Machhapuchchhre Bank was the leader in terms of weekly turnover with Rs 144.48 million. It was followed by NIC Asia Bank with Rs 68.23 million, NMB Bank with Rs 59.32 million, Sanima Mai Hydropower with Rs 58.78 million and Nadep Laghubitta Bittiya Sanstha with Rs 55.32 million.
In terms of weekly trading volume too, Machhapuchchhre Bank took the lead with 676,000 of its shares changing hands. Mega Bank Nepal with 227,000 shares, Civil Bank with 206,000 shares, Sanima Mai Hydropower with 202,000 shares and Prabhu Bank with 189,000 shares were the other top companies to record high trading volume.
Meanwhile, Nadep Laghubitta Bittiya Sanstha topped the chart in terms of number of transactions — 3,118. It was
followed by Panchakanya Mai Hydropower with 2,419, Mega Bank Nepal with 649, Machhapuchchhre Bank with 626
and Sanima Mai Hydropower with 568.
|Kalika Power Company||Ordinary||6,000,000|
|Mirmire Laghubitta Bittiya Sanstha||Rights||450,000|
|Panchakanya Mai Hydropower||Ordinary||11,000,000|
A version of this article appears in print on October 14, 2018 of The Himalayan Times.