Stock market awash with rights and bonus shares

KATHMANDU: The secondary market has a supply of 12.389 million-unit of shares this week as four financial institutions — Biratlaxmi Bikas Bank, United Finance, Sanima Bikas Bank and Standard Finance — have listed their bonus and rights shares for trading.

Over-supply of shares and low investor confidence have been pulling Nepse down over the recent weeks. This week too, Nespe dropped by 7.38 points to 709.82 points from Sunday morning’s opening of 717.20 points.

The 78-scrip sensitive index — considered blue chip shares - also lost a marginal 1.93 points to drop to 190.37 points from Sunday’s opening of 192.30 points. Similarly, the float index — calculated on the basis of real transactions — lost by a mere 0.79 point to drop to 68.58 points from Sunday’s opening of 69.37 points.

The transaction amount for this week increased by 63.50 per cent to Rs 636.5 million from last week’s 389.3 million. The Group-A companies contribution to the total transactions also increased to 67.13 per cent from last week’s 57.62 per cent. Except others’ sub-group — hydropower, development banks, insurance and commercial bank’s sub-groups — all the major market propellers lost this week. The hydropower companies sub-group lost a whopping 78.19 points and plunged to 877.62 points from Sunday morning’s opening of 955.81 points.

Development banks sub-group also lost 11.47 points to 720.76 points, commercial banks lost 7.52 points to 754.61 points and insurance sub-group lost 6.82 points to 641.81 points.

The manufacturing, trading and hotels sub-groups did not see any transaction this week but others’ sub-group gained 4.70 points to 663.81 points. The secondary market this week began in the green on the first day but it steadily dropped on the other four days — over the five days trading.

This week’s top performer was Standard Chartered bank Nepal with transactions worth Rs 99.35 million, followed by Nabil Bank (Rs 63.17 million), Bank

of Kathmandu (Rs 58.35 million), Kist Bank (Rs 46.24 million) and Citizens’

Bank International (Rs 44.46 million).

In terms of number of shares traded, National Hydropower topped with 2,14,000-unit shares traded while in terms of number of transactions Citizens’ Bank International topped with 886 transactions.