The Nepal Stock Exchange (Nepse) last week rose by marginal 0.91 points to close at 1,228.28 points, with a large number of investors selling stocks they held to manage expenses for Dashain and to settle banks’ interests for the first quarter of the current fiscal year.

With the fall in turnover, the average daily transaction amount also declined to Rs320.25 million from Rs477.36 million in the previous week.     

The secondary market that opened at 1,227.37 points on Sunday fell 13.01 points to close at 1,214.36 points. On Monday, the market however gained 6.16 points to close at 1,220.52 points before sliding down 2.59 points on Tuesday. On Wednesday and Thursday, the market index added up 0.4 points and 9.95 points respectively.

Consequently, the market closed through gaining 0.07 percent in overall trading days during the review period.

Stockbrokers attributed the downfall in Nepse to the selling pressure from the investors.

“A large number of investors are also undergoing pressure to clear the interest rate that soared in the previous week in order to manage money for the upcoming Dashain festival,” said a stockbroker under condition of maintaining anonymity.  

The sensitive index that measures the performance of Group ‘A’ companies also inclined up 0.8 points to close at 261.04 points with an increase in the stocks’ value of commercial banks in particular. 

With a small rise in the market index, the average value of the shares listed in the stock market also increased by nominal Rs2.67 billion, as market capitalisation rose to Rs1,464.57 points from Rs1,461.90 billion.

Out of 11 trading groups, only two gained last week. ‘Others’ gained 12.53 points to close at 745.56 points, which was followed by commercial banks that added 4.85 points to their index. Trading remained stable at 233.85 points throughout the week.  

Of the losers, life insurance’s index plunged the largest—71.04 points—to close at 5,504.65 points. The index of non-life insurance plunged by 65.05 points, hotels by 52.33 points, hydropower by 18.32 points, microfinance by 13.79 points, development banks by 2.65 points, manufacturing by 1.96 points and finance companies by 1.47 points.  

Of the individual companies, Machhapuchchhre Bank led in terms of both the transaction amount and the number of traded shares. A total of 676,000 units of the bank’s shares worth Rs144.48 were transacted last week.  

Similarly, NIC Asia Bank with holding transaction of its shares worth Rs68.23 million, stood in second position. NMB Bank, Sanima Mai Hydropower and Nadep Laghubitta Bittiya Sanstha were among others on the lists.

Last week, the stocks of a total number of 198 listed companies were transacted. Along with the rise in the market index, the transaction amount also declined by 32.77 percent to Rs1.60 billion. The number of traded shares however increased to 3,687,649 units from 3,666,873 units.

Right Shares/Bonus Shares

Company    Type    Units

Panchakanya Mai Hydropower     IPO    11,000,000

Kalika Power Company    IPO    6,000,000

Mirmire Laghubitta Bittiya Sansthan    Right    450,000