Nepal Stock Exchange (Nepse) increased 9.5 points to close at 1,539.81 points last week, as investors’ confidence was boosted slightly by the lowering of loan interest rates and timely completion of third phase local election.
Nepal Stock Exchange (Nepse) increased 9.5 points to close at 1,539.81 points last week, as investors’ confidence was boosted slightly by the lowering of loan interest rates and timely completion of third phase local election.
The secondary market which opened at 1,530.31 points on Sunday increased 17.63 points to close at 1,547.94 points. On Monday, the market lost 4.24 points to close at 1,543.7 points. The market was closed on Tuesday and Thursday to celebrate Constitution Day and Ghatasthapana respectively. Nepse opened on Wednesday, sandwiched between the two public holidays to shed 3.89 points.
As a result, the overall market index inched up 0.62 percent over the week.
Ram Krishna Tiwari, managing director of Oxford Securities, attributed the increment in Nepse to the falling interest rate against the loan on shares provided by the banks along with an increasing amount of loanable fund in the banking sector. “In addition, the successful conduction of second phase local election also helped boost investor confidence towards the stock market.”
The sensitive index that measures the performance of Group ‘A’ companies also inclined up 2.38 points to close at 323.11 points with a rise in index of commercial banks in particular.
With a rise in the market index, the average value of the shares listed in stock market also went up Rs11.51 billion with market capitalisation reaching Rs1,786.61 billion from Rs1,775.1 billion over the week.
Of nine trading groups, six posted gain in their indices. Trading added up 62.33 points in its index, the largest of all, to close at 293.58 points. According to Tiwari, investors were mainly attracted shares of Bishal Bazaar which performed stocks transaction in the secondary market following the settlement of its land issues that had remained pending for a long time.
Manufacturing was the second largest gainer, with the group gaining 20.47 points to close at 2,612.79 points. It was followed by commercial banks (16.89 points), hydropower (15.25 points), ‘others’ (4.05 points) and development bank (0.42 points). Of the losers, insurance lost most, dropping 57.58 points to close at 8,458.25 points. It was followed by hotels and finance companies that witnessed a fall of 42.26 points and 6.55 points respectively.
Last week, promoters’ shares of Nepal Life Insurance led both in the transaction amount and the number of traded shares. The company witnessed transaction of its promoters’ shares worth Rs289.09 million as 262,000 unit shares exchanged hands.
The general share of Nepal Life Insurance, with turnover worth of Rs81.39 million, took second place in the segment. Likewise, Sanima Bank, Everest Bank and Nepal Investment Bank were also among the top five companies with largest turnover at the secondary market.
Last week, shares of 169 listed companies were traded. Despite a slight rise in Nepse, the transaction amount plunged 50.34 percent to Rs1.79 billion. The traded number of shares also declined to 6,715,490 units from 6,804,160 units.
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