Nepse ends week 28.33 pts higherNepal Stock Exchange (Nepse) index gained 28.33 points to close at 1,489.06 points last week, as low share prices triggered by nearly two weeks of continuous fall in the market garnered investors’ attention.
Nepal Stock Exchange (Nepse) index gained 28.33 points to close at 1,489.06 points last week, as low share prices triggered by nearly two weeks of continuous fall in the market garnered investors’ attention.
The secondary market that opened at 1,460.73 points on Sunday added up 16.41 points to close at 1,477.14 points. On Monday and Tuesday too, the market gained 13.74 points and 25.14 points respectively. During last week’s trading, the index was at its highest point on Tuesday, at 1,516.02. The index, however, could not maintain its momentum and fell by 11.23 points and 15.73 points on the remaining trading days. As a result, the overall market index surged 1.93 percent over the week.
Stockbrokers considered the growth in Nepse as market correction. “In the aftermath of poor performing secondary market for two consecutive weeks, investors who expect share prices to eventually rise, rushed to purchase shares at cheaper rates,” said a stockbroker under condition of anonymity.
The sensitive index that measures the performance of Group ‘A’ companies also increased 6.33 points to close at 313.12 points with a rise in index of commercial banks along with majority of the other trading groups.
With a growth in the market index, the average value of the shares listed on the stock market also went up Rs32.89 billion with market capitalisation reaching Rs1,728.68 billion from Rs1,695.79 billion over the week.
Except for hotels and trading, the remaining trading groups witnessed upward movement in their indices. Hydropower gained the largest of 92.12 points to close at 1,873.17 points. The rise in hydropower sub-index has been attributed to the abrupt surge in demand for Chilime Hydropower Company. “Based on the rumour that the company will be calling for attractive dividend in future, many investors rushed to purchase shares of the company,” the source said.
Similarly, insurance gained 73.18 points to close at 8,047.69 points. It was followed by manufacturing (70.91 points), ‘others’ (31.81 points), commercial bank (24.44 points), development bank (7.34 points). Finance companies added 0.89 to the group’s sub-index.
However, hotels and trading sub-indices shed 33.8 points and 7.18 points respectively.
Of the individual companies with the largest transaction amount, Chilime Hydropower Company led the segment, posting turnover of Rs161.99 million.
Promoters’ shares of Prabhu Bank, finished in second position with transactions of its stocks worth Rs126.28 million. Likewise, promoters’ shares of Gurans Life Insurance as well as Standard Chartered Bank and Nepal Doorsanchar Company were also among the top five companies with largest turnover at the secondary market.
Likewise, Prabhu Bank, saw 698,000 unit shares exchanging hands and topped in terms of number of transaction.
Last week, the shares of 180 listed companies were traded. Along with the rise in market index, the transaction amount also inclined by 15.6 percent to Rs2.92 billion. The traded number of shares also went up to 6,827,680 units from 6,059,640 units.
Right Shares/Bonus Shares
Company Type Units
Prime Life Insurance Bonus 1,220,400
Nepal Insurance Company Bonus 143,804.10
Kankai Bikas Bank Right 3,210,000
Goodwill Finance Right 2,722,500
Kamana Sewa Bikas Bank Right 2,413,137.60
Sunrise Bank Right 710,709
Development Bond 2081 A General 31,400,000
Development Bond 2088 A General 50,000,000
Development Bond 2084 B General 50,000,000 Development Bond 2079 E General 50,000,000
Development Bond 2081 B General 50,000,000
Development Bond 2085 B General 50,000,000