Weekly share update: Bourse continues northward trend

Kathmandu, May 24:

With the fiscal year coming closer to an end, stock market is showing a year-end boost syndrome. As a result, Nepal Stock Exchange (Nepse) this week posted a healthy growth of 18.78 points to close at 817.64 points on the last day of trading.

Nepse, on a continuous growth path for the last couple of weeks, opened at 798.86 points on Sunday. However, the market capitalization this week dropped substantially by 56.72 per cent, as Nepse had a trading worth over Rs 282.69 million only against the last week’s trading of Rs 653.22 million.

The increased number of companies having their stock traded at the Nepse floor pushed up the index despite a drop in market capitalization, said a stock analyst. Financial institutions, the dominant players at the secondary market, are increasing their paid-up capitals, which is fuelling the capital market, apart from the fiscal year-end syndrome that gives a boost to Nepse.

The Nepse floor opened for three days this week with an all-day registering growth.

The sensitive index - an index of the ‘A’ class companies - also posted a growth of 4.91 points and closed at 214.24 points. The contribution of companies listed under ‘A’ category increased to 64.56 per cent to the total transactions.

On Sunday, Nepse opened at 798.86 points and rose by 2.62 to close at 801.48 points on the second day. The growth continued on the third day, too, as it recorded a growth of 16.16 points. The market closed at 817.64 points.

In terms of monetary value, Bank of Kathmandu (with Rs 22.2 million), ICFC Bittiya Sanstha (with Rs 20.24 million), Nepal Bangladesh Bank (with Rs 19.89 million), International Leasing & Finance (with 12.82 million and Standard Chartered Bank, Nepal (with Rs 12.50 million) are top performers.

National Hydropower Company topped the chart in terms of the number of share traded, with 35,000 units exchanging hands this week. ICFC Finance Company topped the chart in terms of the number transaction, with 546 transactions.

Altogether 75 companies, out of total listed companies, saw their shares being traded at the sole secondary market. Last week the number of companies that had trading stood at 80. The better performance of all leading groups, including commercial banks, development banks, hydropower, and finance companies pushed up the Nepse. However, others and trading groups remained idle this week.

The finance company group closed at 1095.41, a rise of 48.59 points from last week’s closing

of 1049.82 points. Similarly, commercial bank group registered 19.89 points growth to 816.45 points from last week’s closing of 796.86 points, while, development bank group flared by 11.96 points to 1047.29 points from last week’s closing of 1035.33 points.

The insurance and hydropower groups also posted a growth of 0.

72 point and 16.15 points, respectively, to close at 751.74 points and 1167.56 points. The manufacturing and hotel groups, too, registered a growth by 6.21 points and 4.36 points, respectively.