Nepse posts dire week, down 37.97ptsNepal Stock Exchange index (Nepse) plunged 37.97 points to fall below 1,400 points and closed at 1,386.98 points last week as investors took a cautious stance and waited for the new government’s policy.
Published at : February 25, 2018
Updated at : February 25, 2018 12:25
Nepal Stock Exchange index (Nepse) plunged 37.97 points to fall below 1,400 points and closed at 1,386.98 points last week as investors took a cautious stance and waited for the new government’s policy. Another factor that pushed the index down was the failure of Nepal Rastra Bank to introduce suitable regulations for the stock market during their mid-term review of monetary policy.
The market that opened at 1,424.95 points on Sunday posted a double digit loss of 11.05 points to close at 1,413.9 points. On Monday, the market was closed to mark National Democracy Day—a public holiday. When the market reopened on Tuesday, it promptly dropped another 17.18 points to close at 1,396.72 points.
The stock market continued its downward trajectory on Wednesday and Thursday, losing 9.64 points and 0.1 points respectively. As a result, the Nepse index declined 2.66 percent over the week.
In the previous week, the secondary market witnessed a growth of 33.92 points with the formation of new government led by KP Sharma Oli. “This week, investors were skeptical over the new government’s policy toward the stock market due to their reluctance in injecting investment into the country’s only secondary market,” said a stockbroker, under condition of anonymity. “In addition, investors were disappointed with the mid-term review of monetary policy by the central bank last week, which brought almost nothing to promote the country’s only stock exchange market.”
The sensitive index that measures the performance of Group ‘A’ companies also decreased 8.05 points to close at 293.25 points with a fall in indices of the entire trading groups.
With a fall in the market index, the average value of the shares listed in stock market also went down Rs44.37 billion with the market capitalisation reaching to Rs1,622.02 billion from Rs1,666.39 billion over the week.
Furthermore, all ten trading groups witnessed downturn in their indices. Insurance lost the largest of 289.68 points to close at 6,998.96 points. Hydropower’s index dipped 81.26 points, followed by microfinance (76.21 points), hotels (65.05 points), development bank (49.29 points), commercial banks (27.49 points) and finance companies (16.33 points).
Likewise, the sub-indices of ‘others’, manufacturing and trading declined by 11.09 points, 8.31 points and 3.04 points respectively.
Of the individual companies, promoters’ shares of Nepal Life Insurance Company led in terms of the transaction amount. The company witnessed a total transaction of Rs112.06 million. On Thursday alone, there was a single day transaction of Rs55 million of the insurer’s promoters’ shares.
Likewise, Om Development Bank with holding shares transaction worth Rs 80.04 million was in second position, followed by Century Commercial Bank, promoters’ shares of Rastriya Beema Company and Sanima Bank in terms of the transaction volume.
Last week, the stocks of 176 listed companies were traded. Despite a fall in the market index, the transaction amount escalated 10.75 percent to Rs1.70 billion. According to Nepse, the traded number of shares also increased to 4,248,730 units from 3,792,470 units.
Right Shares/Bonus Shares
|Sanima Equity Fund||General||130,000,000|