Nepse plunges nearly 15 pointsNepal Stock Exchange (Nepse) slid 14.71 points to close at 1,643.87 points last week, with the investors’ sentiment affected by the possible opening of an additional stock exchange market in the future and most of the companies already declaring dividends for the current fiscal year.
Nepal Stock Exchange (Nepse) slid 14.71 points to close at 1,643.87 points last week, with the investors’ sentiment affected by the possible opening of an additional stock exchange market in the future and most of the companies already declaring dividends for the current fiscal year.
After the buzz of the local election, the secondary market opened at 1,658.58 points on Monday and inched up 0.65 points to close at 1,659.23 points. On Tuesday, the market plunged 9.99 points to close at 1,649.24 points, followed by continuous losses of 4.98 points and 0.39 points on Wednesday and Thursday respectively.
On an average, the market declined 0.88 points over the review period.
Megh Nath Upadhyaya, managing director of Primo Securities, said the slight downfall in the capital market was an indication of the market leading to stability. “The market to some extent was affected by the ongoing talk to establish new stock exchange, licencing new insurance companies and the approaching fiscal year end withcompanies completing their dividend declaration,” said Upadhyaya. “Investors however were in positive sentiment with the recent reform attempts by the regulators including opening of remote work stations in locations outside the Kathmandu Valley.”
Along with the Nepse index, the sensitive index that measures the performance of Group ‘A’ companies also plunged 3.85 points to close at 349.94 points with the majority of the groups including commercial banks sub-index, the group that holds majority of shares in the secondary market.
With the fall in the market index, the average value of the shares listed on the stock market also fell Rs10.93 billion, with the market capitalisation dropping to Rs1,914.72 billion from Rs1,925.65 billion over the week.
Except manufacturing and hotels, indices of the remaining nine trading groups took a downward trajectory last week. Insurance witnessed the largest fall of 34.83 points to close at 8,887.33 points. Upadhyaya considered the fall to be normal as the group’s index was already reaching the uppermost level compared to the other groups’ indices.
The Nepse of commercial bank was the second in the list, shedding 23.26 points to close at 1,477.6 points. Hydropower lost 16.99 points, ‘others’ 9.84 points, development bank 2.92 points and finance companies lost 0.02 points.
One of two indices that managed to post gains last week was manufacturing, adding up 123.94 points to close at 2,327.28 points. Upadhyaya said the good financial report posted by Unilever Nepal was the main factors behind investors’ attraction for the group. Likewise, hotels’ index also surged 37.93 points.
Himalayan General Insurance observed the largest turnover of shares worth Rs188.24 million. According to Upadhyaya, the approaching book close of the company with a declaration of 1.66 percent right shares to the shareholders resulted in the largest turnover in the company’s shares.
Similarly, Life Insurance Corporation Nepal’s stocks worth Rs113.2 million were transacted. Nepal Life Insurance, Nepal Credit and Commerce Bank and Standard Chartered Bank Nepal were also among the top five companies in largest turnover.
Likewise, NIBL Sambriddhi Fund 1, topped in terms of number of transacted shares with over 1.688,000 units exchanging hands.
Last week, the shares of 155 listed companies were traded. With the index slipping, the transaction amount also dropped 7.91 percent to Rs2.58 billion. The traded number of shares however escalated to 8,326,220 units from 4,994,170 units.
Right Shares/Bonus Shares
Company Type Units
Prime Commercial Bank Bonus 8,522,103.21
Himalayan Bank Bonus 6,427,350
Fewa Bikas Bank Bonus 2,049,700
Manjushree Finance Bonus 350,910
Jebils Finance Bonus 321,062.50
Namaste Bittiya Sanstha Bonus 90,000
Kasthamandap Development Bank Bonus 1,588,918.54
Manjushree Finance Right 4,386,375
Kasthamandap Development Bank Right 1,699,741.70
Western Development Bank Right 1,569,600
Seti Finance Right 834,400.14
Namaste Bittiya Sanstha Right 375,000
Janata Bank Right 21,726
Standard Chartered Bank General 2,558,140