Nepse’s two-week winning streak ends on transaction downfall

- RAJESH KHANAL, Kathmandu

Mar 24, 2019-

Nepal Stock Exchange (NEPSE) index last week shed 14.89 points to close at 1,140.57 points, as investors rushed to book profit after two weeks of increasing share prices.

With a downfall in market transaction, the average daily turnover also declined to Rs288.27 million from Rs391.20 million.

The secondary market that opened at 1,155.46 points on Sunday gained 5.99 points to close at 1,161.45 points. However, the market went down by 8.35 points and 5.64 points on Monday and Tuesday, respectively. Trading was closed on Wednesday to mark the public holiday, Holi. When it reopened on Thursday, the market promptly declined by 6.89 points, eventually taking the market down 1.28 percent in overall trading during the review period.

Stock analysts attributed the rise in selling pressure for the market downfall. “As many investors rushed to book profit of the previous two weeks, it affected trading at the market,” said a stockbroker under condition of maintaining anonymity. The market had picked up around 50 points in the previous two weeks, breaking the prevailing bullish trend.

Along with the NEPSE, the sensitive index that measures the performance of blue chips companies also fell by 3.62 points to close at 242.46 points after majority of trading groups landed in the red.  

With a downfall in share prices, investors lost Rs20.30 billion from the market, as the market capitalisation declined to Rs1,393.98 billion from Rs1,414.28 billion.

Except for manufacturing and finance companies, the remaining nine trading groups’ indices went down during review period. Non-life insurance lost the largest of 127.52 points to close at 5,377.53 points. Life insurance too recorded a fall of 112.67 points in its index.

Likewise, index of microfinance declined 28.87 points, hotels 26.46 points, hydropower 18.98 points, development banks 17.96 points and commercial banks observed a downfall of 12.69 points. Trading and ‘others’ lost 5.66 points and 4.9 points respectively.  

Of the two gainers, manufacturing and finance companies added 39.49 points and 6.54 points respectively in their indices.   

Regarding the individual companies, promoter shares of Global IME Bank posted the largest amount of transaction. The turnover amount stood at Rs530 million. It was followed by promoter shares of Shine Resunga Development Bank, with turnover amount of Rs343 million. Upper Tamakoshi Hydropower, Nepal Credit and Commerce Bank and Civil Bank were among the top five.

Last week, stocks worth Rs1.15 billion were transacted, which was 41 percent less compared to the turnover amount in the previous week. The total number of traded shares also decreased to 4,381,171 units from 6,485,880 units. During the review period, seven companies listed their primary shares at NEPSE.

Right Shares/Bonus Shares

Company    Type    Units

Deprosc Laghubitta Bittiya Sansthan    Bonus    703,100.4018

Sana Kisan Bikas Bank    Bonus    1,572,069.82

Shivam Cement    IPO    44,000,000

Universal Power Company    IPO    21,003,500

NMB Bank    Bonus    8,743,784.22

Butwal Power    Bonus    2,218,834

Citizen Bank International    Bonus    2,914,457.73

Published: 24-03-2019 08:37

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