Weekly share update : Nepse set to cross 1000-point mark

Kathmandu, July 19:

Nepse jumped up a whopping 42.39 points to close at 991.91 from last week’s closing of 949.52 points. After the last two

weeks’ slow performance the secondary market has geared up and looks to cross the 1000-point mark again, especially as the buying pressure is increasing in the market.

Though, the market opened in the green zone, contribution of companies trading under A-category decreased to 33.82 per cent. The sensitive index - a barometer of A-category companies - however gained 10.90 points to 262.18 points from last week’s closing of 251.33 points.

All the five days of this week registered gains. On Sunday, it flared by 3.94 points to 953.46 points from last week’s closing of 949.52 points. On Monday, it surged by 5.80 points to 959.26 points. On Tuesday, it went up by 14.10 points to 963.36 points. Similarly, on Wednesday, it continued to post a growth by 18.76 points to 982.12 points and on Thursday it flared by 8.79 points to close the weekly market at 991.91 points.

In terms of monetary value, Nepal Credit and Commerce Bank (Rs 262.44 million), Nepal Bangladesh Bank (Rs 197.14 million), Bank of Kathmandu (Rs 52.65 million), National Hydropower Company (Rs 45.50 million) and Nepal Investment Bank (Rs 25.08 million) are this week’s top five gainers.

In terms of numbers of share units traded, Nepal Credit and Commerce Bank topped the chart with 5,79,000 units of its shares traded this week while Biratlaxmi Bikas Bank topped the chart in terms of number of transactions, with 173. This week, shares of 73 companies were traded against last week’s 77 companies. This week Nepse saw transactions of Rs 878.99 million against last week’s Rs 408.87 million. Except hotel, trading and manufacturing groups, all other groups gained this week.

Nepse listed 15,000,00 unit NEA Power Bond-2069 worth Rs 1,000 face value that attracts 7.75 per cent interest per annum.

Investors’ cue:

KATHMANDU: Hopeful investors choose stocks that are going up thinking that these will continue going up for some reason. But value investors know the reason for choosing one stock instead of another. The basic idea behind the value investor’s best-known tool is the price-to-earnings ratio (P/E). It has been part of the investing toolbox and is the most simple of value-investing tools. Let’s take the basic version. Companies report their earnings per share. Add up the last four quarters of earnings. Divide that number by the share price. If earnings come to one rupee and the stock sells for Rs 20, the P/E is 20. Once you know the P/E, the next step is interpreting the answer. It’s a general perception that value investors look for cheap stocks, those with a P/E of 15 to 20 or less. — HNS