Nepse ends week 16.39 points lowerNepal Stock Exchange (Nepse) index plunged 16.39 points to close at 1,520.15 points last week, as results of the provincial and parliamentary polls combined with the stockbrokers’ plan to protest shook investors’ confidence.
Published at : December 17, 2017
Updated at : December 17, 2017 12:28
Nepal Stock Exchange (Nepse) index plunged 16.39 points to close at 1,520.15 points last week, as results of the provincial and parliamentary polls combined with the stockbrokers’ plan to protest shook investors’ confidence.
Stockbrokers announced that they will be protesting the government’s move to enforce value added tax on stock brokering service.
The secondary market that opened at 1,536.54 points on Sunday shed 6.05 points to close at 1,530.49 points. The index continued to drop points on Monday and Tuesday, losing 2.74 points and 17.54 points respectively. Wednesday offered a brief respite with the index gaining 10.53 points but the market continued its dour week on Thursday, dropping 0.59 points. Overall, the market index dropped by 1.06 percent over the week.
Stockbrokers attributed the fall in Nepse index to the election results. “Investors continued their ‘wait and see’ sentiment as the results from the polls raised uncertainty on which political force will steer the next government. This lowered demand for stocks,” said a stockbroker under condition of anonymity. “In addition, stockbrokers expressing dissatisfaction over the government’s recent move to impose VAT on the brokerage service also affected the transaction at the secondary market.”
The sensitive index that measures the performance of Group ‘A’ companies also went down 3.02 points to close at 320.65 points with a fall in index of commercial banks along with a number of other trading groups. With a fall in the market index, the average value of the shares listed in stock market also declined Rs17.92 billion, with the market capitalisation reaching to Rs1,767.56 billion from Rs1,785.48 billion over the week.
Of the ten trading groups, seven witnessed downward movement in their indices. Insurance lost the largest of 233.81 points to close at 7,894.84 points. “Recently, investors have started selling stocks of insurance companies to purchase stocks of hydropower companies that are likely to issue primary shares,” the source said. Hotels which shed 59.26 points was the second largest among the losers. Hydropower index also shed 39.2 points. Similarly, development banks lost 33.23 points, microfinance 29.29 points, commercial banks 13.22 points and finance companies’ index went down by 4.74 points.
Manufacturing and ‘others’ however gained 84.12 points and 19.38 points respectively. The sub-index of trading was stable at 205.24 points throughout the week.
Of the individual companies with the largest transaction amount, Standard Chartered Bank led the segment. The company witnessed the trading of shares worth Rs433.68 million last week. Stockbrokers attributed the largest transaction of Standard Chartered to the bank’s announcement to provide 100 percent bonus shares to its shareholders.
Likewise, Global IME Bank was in second position from the trading of shares worth Rs159.32 million, followed by Butwal Power Company, Nepal Doorsanchar Company and promoters’ shares of Rastriya Beema Company.
Likewise, Global IME Bank, topped in terms of number of traded shares as 482,000 unit shares exchanged hands over the review period.
Last week, stocks of 179 listed companies were traded. Despite the fall in market index, the transaction amount escalated 61.54 percent to Rs2.92 billion. The traded number of shares inclined up 5,795,730 units from 3,370,680 units.
Right Shares/Bonus Shares
Company Type Units
Himalayan General Insurance Right 6,420,000
Muktinath Bikas Bank Right 6,170,865.04
Alpine Development Bank Right 1,803,247
Neco Insurance Bonus 712,895.99