Weekly share update : Nepse on crusade mode

Kathmandu, May 17:

As the fiscal year is going to end, the secondary market is flooding with rights shares pushing the Nepse up. This week, Nepse posted a growth of 41.34 points to 812.67 points on the last day of the trading from last week’s closing of 771.33 points.

Financial institutions, the dominant players at the secondary market, have to increase their paid up capital according to the capital plan they have already submitted to the central bank. Rights shares — worth billions — of more than 90 per cent of the financial institutions are in pipeline fuelling the capital market, apart from the fiscal year-end syndrome that gives the boost to Nepse.

The secondary market ended in the green zone on four of the five-day trading, loosing only on the last day. The sensitive index — an index of the A-class companies — also posted 9.90 points growth to 213.38 points from last week’s closing of 203.48 points.

On Sunday, Nepse surged by 2.21 points to 773.54 points from last week’s closing of 771.33 points. Similarly, on Monday it posted a growth of 11.81 points to 785.35 points. On Tuesday, it recorded a growth of 20.91 points to 806.26 points. On Wednesday, Nepse flared to 825.61 points, a rise of 19.35 points from Tuesday’s closing. However, it plunged by 12.94 points to close the weekly trading at 812.67 points.

In terms of monetary value, Ace Development Bank (with Rs 120.21 million), Bank of Kathmandu (with Rs 56.97 million), Nepal Bangladesh Bank (with Rs 36.53 million), Standard Chartered Bank, Nepal (with Rs 29.32 million), and ICFC Finance Company (with Rs 27.13 million) are this week’s top performers.

Ace Development Bank also topped the chart in terms of numbers of share units traded with 1,96,000-unit of its shares being traded this week. ICFC Finance Company topped the chart in terms of number transaction with 826 transactions.

The better performance of commercial banks, development banks, hydropower, insurance and finance companies groups have pushed the Nepse up. However, hotel group ended in the negative territory. It lost 6.44 points to 394.03 points from last week’s closing of 400.47 points.

The finance company group closed at 1040.21, a rise of 101.94 points from last week’s closing of 938.27 points. Similarly, commercial bank group posted 35.23 points growth to 812.72 points from last week’s closing of 777.49 points, while, development bank group flared by 76.16 points to 1113.75 points from last week’s closing of 1037.59 points.

Insurance and hydropower gr-oups have also posted 3.77 po-ints (to 753.37 points from last week’s closing of 749.60 points) and 112.39 points (to 1158.44 points from last week’s closing of 1046.05 points) growth.

Citizen Investment Trust allots NT shares:

KATHMANDU: Citizen Investment Trust (CIT) has alloted the much-awaited Nepal Telecom (NT) shares on Friday. “CIT has published the names of bidders — who got NT’s shares — on its website on Friday. Except for few applicants, who lacked necessary documents and signature, all — those who have applied — got the NT shares,” Anil Dhakal, officer at the CIT, said, adding that around 271 applicants’ 40,000-unit shares are in withheld. Finance Ministry had on Wednesday given a go ahead to the CIT — the issue and sales manager of the NT shares — to allot NT shares. “We will write to the Sebon, the regulatory authority, on what to do about withheld applicants,” he said. CIT is planning to distribute share certificates within two months and immediately the shares will be listed. “Most probably, the shares will be listed within the current fiscal year,” he added. — HNS