Nepal Stock Exchange (NEPSE) last week inched up 4.92 points to close at 1,319.47 points, with investors doubting about the government budget to address the underlying problems in the capital market and drive the market.

The secondary market opened at 1,314.55 points on Sunday, slipped 11.94 points to close at 1,302.61 points. However, the market posted gains during the remaining trading days.

On Monday, the market increased marginally by 0.35 points and on Tuesday, the market added 2.53 points to its index. The largest gain during the review period was on Wednesday, with the market picking up 8.39 points. Trading ended on Thursday with an uptick of 5.59 points.

Overall, the market expanded by 0.37 percent over the review period.

Stock analysts attributed the small growth in the stock market to the uncertainty surrounding the annual budget that was announced by the government on Wednesday. Investors are unsure if the budget will actually address the underlying problems in the capital market yet they do not want to miss out on potential profits if the budget does actually boost the market.

“Previous to the budget announcement, investors were sceptical over the Finance Minister Yubaraj Khatiwada’s policy to drive the stock market. However, the market responded positively to the budget announcement which talks on bringing in a number of measures to drive the market,” said a stockbroker on request of not disclosing their identity.

The sensitive index that measures the performance of blue chips companies also added 0.77 points to close at 281.15 points as a result.  

With a rise in the share prices, investors added Rs7.44 billion to their investment portfolio, as the market capitalisation increased to Rs1,639.55 billion from Rs1,632.11 billion. Of the 11 sub-groups, five gained points last week. Of them, manufacturing added the largest of 189.93 points and closed at 2,781.58 points. Commercial banks and development banks added 9.24 points and 8.07 points respectively. Similarly, finance companies added 7.05 points and microfinance’s index increased marginally by 0.64 points.

Out of the six losers, life insurance plunged 120.61 points and closed at 6,529.67 points, the largest loss during the review period. Non-life insurance was down 80.4 points and hotels shed 61.02 points. ‘Others’ lost 5.58 points, hydropower lost 3.91 points and trading lost 2.79 points.  

Regarding the individual companies, Shivam Cements recorded shares transaction worth Rs661.19 million, the largest of all. It was followed by Prabhu Bank, Nepal Bank Limited, Upper Tamakoshi Hydropower and Nepal Credit and Commerce Bank.

Last week, stocks worth Rs4.33 billion were traded which was 13.74 percent less than the amount in the previous week. The total number of traded shares also declined to 13,691,413 units from 16,156,438 units. NEPSE listed 1,253,374.52 units primary shares of Gurans Laghubitta Bittiya Sanstha, Vijaya Laghubitta Bittiya Sanstha and Reliance Finance over the review period.

Right Shares/Bonus Shares

Company                                             Type             Units

Gurans Laghubitta Bittiya Sanstha      IPO               775000

Vijaya Laghubitta Bittiya Sanstha        Bonus           177100

Reliance Finance                                  Right            301274.52