Money

Nepse kicks off 2018 with 9.05pt gain

- Post Report, Kathmandu

Jan 7, 2018-

Nepal Stock Exchange (Nepse) index gained 9.05 points to close at 1,423.83 points last week, as investors rushed to purchase stocks at rock bottom prices while banks reached a consensus to cap the interest rate at 12 percent. The secondary market snapped a freefall streak of three weeks by posting a weekly gain in its index.

 

The market that opened at 1,414.78 points on Sunday plunged 24.2 points to close at 1,390.58 points. On Monday, the market picked up 44.22 points to close at 1,434.8 points. The market gained another 2.44 points on Tuesday before going down by 20.63 points on Wednesday. The market concluded its first week of trading in 2018 on a positive note by adding 7.22 points on Thursday.

 

Stockbrokers attributed the rise in Nepse to investors willing to pick up stocks whose value had fallen recently. “As the prices of shares continued to plunge for nearly three  successive weeks, investors were attracted to purchase shares,” said a stockbroker under condition of anonymity. “Likewise, the bankers collectively agreeing not to increase the interest rate beyond 12 percent last week had also fuelled demand for stocks”.

 

In addition, investors’ growing attraction in purchasing promoters’ shares has also been attributed for the rise in the market index. “Compared to ordinary shares, prices of promoters’ shares are comparatively low while the returns are attractive,” the source said. The sensitive index that measures the performance of Group ‘A’ companies also went up 2.04 points to close at 299.66 points with a significant rise in index of commercial banks along with a majority of other trading groups. 

 

With a fall in the market index, the average value of the shares listed on the stock market also increased, netting investors a gain of Rs15 billion, as the market capitalisation reached to Rs1,660.29 billion from Rs1,645.29 billion over the week. 

Of the ten trading groups, six witnessed upward movement in their indices. Hotels gained the largest of 28.9 points to close at 2,115.75 points. Similarly, commercial bank gained 26.37 points to close at 1,231.91 points. It was followed by manufacturing (21.24 points), insurance (9.01 points), microfinance (5.29 points) and finance companies (4.54 points). 

 

Out of the four losers, ‘others’ lost the largest of 55.81 points to close at 773.36 points. Similarly, trading lost 5.66 points, hydropower lost 2.95 points and development bank lost 0.4 points. 

 

Of the individual companies, Standard Chartered Bank observed transactions worth Rs173.83 million to lead the segment. “With the fall in the bank’s share price to as low as Rs900 from an average of Rs1,900 per share following the adjustment after the distribution of 100 percent bonus shares, investors rushed to purchase the bank’s shares at the lower price,” the stockbroker said. 

 

Likewise, Prabhu Bank recorded transactions worth Rs171.21 million and ended up as runner up in the segment. It was followed by promoters’ shares of Asian Life Insurance, Nepal Credit and Commerce Bank and Nepal Life Insurance. 

Likewise, Prabhu Bank saw 534,000 unit shares exchanging hands and topped in terms of number of traded shares. 

 

Last week, stocks of 179 listed companies were traded. Along with the rise in market index, the transaction amount also increased marginally by 0.91 percent to Rs2.7 billion. The traded number of shares also soared to 6,479,890 units from 5,725,260 units. 

 

Right Shares/Bonus Shares

Company Type Units

Mega Bank Right 27,944,295

Mero Microfinance Bittiya Sanstha Bonus 660,000

Published: 07-01-2018 09:15

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