Time to buy shares, hold em
KATHMANDU: Nepal Stock Exchange (Nepse) Ltd dipped again this week — March 19 to 25 — after a run of bullish trend to stand at 466.09 points, losing 6.73 points. However, share analysts are looking at the trend as a big opportunity for investors.
This is the time to buy potential shares and hold them, said shares analyst Rabindra Bhattarai. “If an investor can hold shares for at least a year, it is the best time to buy shares in the secondary market,” he said adding that holding for about two years would be the best for investors.
Nepse will go to a further low of 450 points in the coming days as the basic fundamentals of economy are deteriorating these days. “It will not be good to buy shares of commercial banks at the moment,” he cautioned. Still, shares of Nepal Telecom and hydropower companies can be beneficial to investors. Shares of Nepal Telecom are good for those investor who want good dividends while hydropower companies are good for long-term investors.
Nepse general manager Shankar Man Singh also said the same. It will take some months to revive the secondary market, he said adding that all hopes rest upon the newly-appointed governor of Nepal Rastra Bank. “If economic indicators stay on track, Nepse will go bullish,” he said.
Nepse floor saw 2,883 transactions of 81 companies worth Rs 84.66 million this week — a drop of 35.53 per cent compared to the previous week’s Rs 130.91 million. Class ‘A’ companies covered Rs 54.21 million in the total transaction.
Six sectors — hydropower, commercial bank, development banks, finance companies and others which include Nepal Telecom and insurance — lost 15.26 points, 7.58 points, 6.97 points, 4.70 points, 6.50 points and 2.84 points, respectively. Trade was only the sector that gained 0.01 points in the entire week while no transaction was made in hotels and manufacturing sectors.
Merchant Finance topped in amount of transaction with Rs 8.92 million while Vibor Development Bank topped in units of shares (22,000 units) and number of transactions (419).
Close on the heels of Merchant Finance, Lakshmi Bank, Vibor Development Bank, Chilime Hydropower and Bank of Kathmandu took second to fifth on the ladder with transaction worth Rs 8.23 million, Rs 6.59 million, Rs 5.76 million and Rs 5.52 million, respectively.