Nepal Stock Exchange (Nepse) rose 14.05 points to close at 1,660.58 points last week, as banks started reducing the lending rate and most of the listed companies posted good financial report, increasing investor confidence.
The secondary market that opened at 1,646.53 points on Sunday, declined 3.25 points to close at 1,643.28 points. On Monday, the market gained 9.41 points to close at 1,652.69. The market followed an upward trend on Tuesday and Wednesday, gaining 7.56 points and 2.49 points respectively. Thursday, the last day of trading bucked the trend, as Nepse lost 2.16 points.
As a result, the overall market index inched up marginally by 0.85 percent. Santosh Mainali, managing director of Secured Securities, attributed the growth in Nepse to banks reducing the lending rate. “As banks have a higher amount of loanable funds, they have started offering loans with reduced interest rates,” said Mainali, adding that the positive financial report posted by the majority of listed companies had also boosted investors’ confidence.
The sensitive index that measures the performance of Group ‘A’ companies also added 1.99 points to close at 348.22 points with a rise in index of commercial banks along with majority of trading groups.
With a rise in market index, the average value of the shares listed on the stock market also went up Rs12.71 billion, with market capitalisation reaching Rs1,943.85 billion.
Except for the sub-indices of insurance and trading, the remaining trading groups posted a gain in their indices. Hotels gained the largest of 209.68 points to close at 2,525.35 points. Mainali said the booming hotel business in the country along with the good financial report of listed hotels including Soaltee, Oriental and Taragaun in the last fiscal year could have attracted investors in the segment.
Manufacturing gained 100.37 points to close at 2,751.46 points. Among the other gainers, finance companies added up 63.32 points, development banks added up 58.31 points, hydropower 27.67 points, ‘others’ 15.32 points and commercial banks gained 6.18 points.
Insurance was the only loser in the secondary market last week. The index of insurance fell 223.53 points. The index of trading was stable at 214.11 points
throughout the week.
Of the individual companies with the largest transaction amount, Nepal Grameen Bikas Bank led the segment. The microfinance company witnessed total share transactions worth Rs245.76 million. Mainali said there was a possibility that the microfinance company could issue either right shares or further public offering, therefore attracting investors to pick up shares in the company.
Muktinath Bikas Bank was in second place, with total share transaction of Rs223.24 million. Nepal Life Insurance, Prabhu Insurance and Sanima Bank were also among the top five companies with largest turnover in the secondary market.
Likewise, Laxmi Value Fund 1 saw 1,742,000 units shares exchanging hands and topped in terms of number of transaction.
Last week, shares of 167 listed companies were traded. Despite Nepse picking up points, the transaction amount fell 5.05 percent to Rs5.25 billion. The traded number of shares however surged to10,580,490 units from 9,058,070 units.
Right Shares/Bonus Shares
Company Type Units
Mission Development Bank Right 1,949,250
Janata Bank Nepal Right 8,515,005.60
Tourism Development Bank Right 9,197,712
Tinau Bikas Bank Right 1,194,796.09