Nepal | May 23, 2019

Secondary market yet to recover from bearish trend

Himalayan News Service

Kathmandu, February 2

As the market was flooded with talks that Nepal Stock Exchange (Nepse) would mandatorily apply Personal Account Number (PAN) provision for investors while buying or selling stock, the Nepse index went down by 0.95 per cent or 11.16 points in trading week between January 27 and 31.

“Share investors were apprehensive that Nepse would start implementing the PAN provision. In fact, the government did want to implement it as early as possible but we have urged the government to apply it gradually,” said Uttam Aryal, chairman of Investors Association of Nepal.

“Nepse has listened to our concerns and has said it will not apply PAN provision without conducting a thorough study, which is good news for investors,” he added.

However, the Securities Board of Nepal — secondary and commodities market regulator — has yet to approve the decision made by Nepse.

Similar to Nepse index, the sensitive index also decreased by 0.75 per cent or 1.86 points to 246.79 points and float index went down by 0.97 per cent or 0.83 point to 84.32 points.

In the review period, weekly turnover decreased by 17.69 per cent as compared to the previous week to
Rs 1.33 billion. In the previous week the market witnessed turnover of
Rs 1.62 billion. Likewise, the daily
average turnover also went down to Rs 267.64 million, which was a decline of 17.69 per cent in comparison to the previous week when it stood at Rs 325.16 million.

The secondary market had opened at 1,172.77 points on Sunday and went down by 10.69 points by the end of the first trading day. However, on Monday, the market increased by 2.80 points. The local bourse again went down by 3.90 points on Tuesday and by 0.40 point the next day. However, on Thursday the market rose by 1.04 points to close the week at 1,161.63 points.

In the review week, only the trading and microfinance subgroups landed in the green zone. The trading sub-index gained 0.52 per cent or 1.31 points to 253.9 points and the microfinance subgroup inched up by 0.32 per cent or 4.60 points to 1,445.41 points.

Meanwhile, the manufacturing sub-index led the pack of losers dipping by 3.60 per cent or 75.63 points to land at 2,024.78 points for the week. Share price of Unilever Nepal went down by Rs 1,235 to Rs 19,657.

Similarly, hydropower sub-index decreased by 2.95 per cent or 37.02 points to 1,218.80 points with share price of Upper Tamakoshi shrinking by Rs 16 to Rs 258. The non-life insurance subgroup too went down by 1.78 per cent or 101.14 points to 5,582.02 points and the life insurance sub-index fell by 1.37 per cent or 83.34 points to 6,020.77 points.

Moreover, finance subgroup dipped by 0.89 per cent or 5.47 points to 605.46 points. Likewise, banking sub-index descended by 0.79 per cent or 7.89 points to 989.14 points with the share price of Everest Bank falling by three rupees to Rs 524.

Meanwhile, the hotels subgroup decreased by 0.47 per cent or 8.20 points to land at 1,727.87 points. Likewise, the development bank sub-index fell by 0.43 per cent or 6.29 points to 1,453.14 points. Moreover, the others subgroup also inched down by 0.20 per cent or 1.52 points to 752.47 points.

In the review week, Upper Tamakoshi Hydropower was the leader in terms
of weekly turnover with
Rs 103.23 million. It was followed by Citizen Investment Trust with Rs 94.04 million, Nepal Bank with
Rs 49.42 million, NIC Asia Bank with Rs 38.79 million and Prabhu Bank (Promoter Share) with Rs 38.61 million.

In terms of weekly trading volume too, Upper Tamakoshi took the lead with 391,000 of its shares changing hands. Prabhu Bank (Promoter Share) with 257,000 shares, Nepal Bank with 170,000 shares, Janata Bank (Promoter Share) with 168,000 shares and Civil Bank (Promoter Share) with 165,000 shares were
the other top firms to record high trading volume.

Meanwhile, Upper Tamakoshi again topped the charts in terms of number of transactions — 6,668. It was followed by Citizen Investment Trust with 573, Panchakanya Mai
Hydropower with 533, Kalika Power Company with 528 and Nepal Investment Bank with 512 transactions.

New Listings

Company                              Type           Units

Citizen Investment Trust       Bonus        408,225

Mahalaxmi Bikash Bank        Bonus      2,107,037.96

Pokhara Finance                   Bonus      1,992,289.66


A version of this article appears in print on February 03, 2019 of The Himalayan Times.


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