Nepse bullish, gains 101.6 points

- Post Report, Kathmandu

Apr 2, 2017-Nepal Stock Exchange (Nepse) gained 101.6 points to close at 1,587.64 points last week, with investors flocking to purchase shares amid rumours of the regulator introducing trading outlets outside Kathmandu which would raise share prices.

This caused a significant rise in transaction volume and the average daily turnover also rose to Rs1.79 billion from Rs1.15 billion last week.The secondary market opened at 1,486.04 points on Sunday and gained 47.79 points to close at 1,533.83 points. Monday saw markets close due to a public holiday. The market resumed on Tuesday, gaining 76.79 points to close at 1,610.62 points. The market was not so upbeat on Wednesday and Thursday, dropping 22.33 points and 0.65 points respectively.

The capital market rose 6.83 percent in overall trading last week.  

Stockbrokers attributed the rise in Nepse to the commencement of remote work stations recently established in six locations outside the valley. Since last Sunday, the trading outlets have been opened in Nepalgunj, Butwal, Narayanghat, Banepa, Biratnagar and Birtamode. Earlier, nine such outlets were in operation.

“Lured by the possible rise in share prices with surge in demand registered at these outlets, investors thronged to purchase stocks, leading to a whopping rise in Nepse,” said Narendra Raj Sijapati, managing director of Kalika Securities. “The recent development along with local elections to be held on time has also added fuel.”

Along with the Nepse index, the sensitive index that measures the performance of Group ‘A’ companies also gained 22.56 points to close at 345.82 points. With the rise in commercial banks’ index by 95.65 points along with positive growth in most of the sub-groups, the sensitive index observed the significant gains across the board. 

With the rise in Nepse index, the total value of the shares listed in stock market increased by Rs118.55 billion, with the market capitalisation soaring to Rs1,804.91 billion from Rs1,686.36 billion over the week. 

Indices of all nine trading groups showed positive gains last week except manufacturing. Insurance sub-index witnessed the highest gains of 624.09 points to close at 7,850.99 points. Sijapati said investors were attracted to purchase the insurance companies’ stocks following the massive drop in their prices during the bearish trend of the last few months. 

The hydropower sub-index followed in second place, gaining 174.94 points to close at 2,010.3 points. The other sub-indices that saw positive gains were; development bank gaining 121.15 points, hotels gaining 106.77 points, commercial banks gaining 95.65 points, finance companies gaining 59.04 points, ‘other’ gaining 17.35 points and trading gaining 1.68 points. 

Manufacturer sub-index was the lone loser of last week. The group lost 12.77 points to close at 2,168.79 points. Last week, Sanima Bank observed the largest turnover amount of Rs461.9 million. Similarly, Nepal Bangladesh Bank’s stocks worth Rs417.86 million were transacted. Promoters’ shares of Nepal Bangladesh Bank and stocks of Laxmi Bank and Nepal Credit and Commerce Bank were among the top five that were most traded. 

Promoters’ share of Nepal Bangladesh Bank with holding transaction of 1,047,000 shares led in terms of number of traded shares. 

Last week, the shares of 159 listed companies were traded. Along with the bullish Nepse, the transaction amount increased 24.60 percent to Rs7.19 billion. The number of traded shares also increased to 14,041,010 from 10,833,080 units.  

Right Shares/Bonus Shares

Company                                                   Type    Units

Paschimanchal Finance Company       Bonus    455,260

Janaki Finance Company                       Bonus    310,781

Mahila Sahayatra Microfinance              Bonus    110,000

Namaste Bittiya Sanstha                          Bonus    90,000

Published: 02-04-2017 10:01

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