Stock market inches 2.39 points up

- POST REPORT, Kathmandu
Stock market inches 2.39 points up

May 24, 2014-

Nepal Stock Exchange (Nepse) last week inched 2.39 points up to close at 852.06 points.

The secondary market, which opened at 849.67 points on Sunday, shed points on Monday and Tuesday, before rising in the last two trading days.

Increased investor attraction towards hydropower companies’ shares helped neutralise the losses posted by heavyweights like commercial banks and insurance companies. The hydropower sub-index gained a whopping 110.83 points.

Narendra Raj Sijapati, president of the Nepal Stockbrokers’ Association, attributed the slight rise in the benchmark index to investors reshuffling their portfolio. He said increased attraction towards hydropower companies and declining charm of commercial banks and insurance companies played a major role in the marginal growth of the index.

“Most commercial bank investors are now diverting their investment to other sectors due to the possibility of the banks supplying 19 percent promoter’s shares to the secondary market,” he said.

The regulators have allowed banks to reduce the size promoter’s shares from 70 percent to 51 percent. Also, analysts say less than expected profits of commercial banks also encouraged investors to switch to other sectors. Net profits of commercial banks grew 12.32 percent to Rs 14.49 billion as of the third quarter of the fiscal year, against the growth rate of 42.26 percent in the same period a year ago.

Out of the nine trading groups, five witnessed posted gains last week. The hydropower sector led the gainers’ side, followed by development banks, finance companies, ‘others’ and hotels.

The manufacturing sector witnessed the biggest downfall of 44.21 points, followed by insurance companies and commercial banks. The trading group was stable at 182.83 points.

Meanwhile, the sensitive index that measures the transaction of ‘A’ category companies went up 1.03 points to close at 181.31 points. National Life Insurance posted the highest individual transaction of Rs 267.863 million.

Chilime Hydropower, Nepal Bangladesh Bank, Civil Bank and Nabil Bank rounded out the top five. Similarly, Nabil Balanced Fund topped in terms of the number of shares traded—864,556 units. The overall market transaction stood at Rs 1.98 billion last week, up 30.60 percent compares to the previous week’s figure. The number of shares traded also jumped to 5,075,540 units from 3,636,880 units. Transaction of ‘A’ category companies amounted to Rs 1.03 billion, 52.03 percent of the total market transaction.

Meanwhile, the capital market listed bonus shares of five companies—Namaste Bittiya Sanstha, Om Finance, Sahayogi Bikas Bank, Swabalamban Laghubitta Bikas Bank and Ace Development Bank.

 

TOP FIVE COMPANIES IN TERMS OF TURNOVER

Company    Turnover (in Rs millions)

National Life Insurance Co    267.863

Chilime Hydropower Co    256.821

Nepal Bangladesh Bank    95.937

Civil Bank    77.41

Nabil Bank    71.303

SECTORS THAT WENT up

Sector    Points Gained

Hydropower Companies    110.83

Development Banks    21.92

Finance Companies    10.74

Others    8.22

Hotels    0.35

SECTORS THAT WENT down

Sector    Points Gained

Manufacturing    44.21

Insurance Companies    29.91

Commercial Banks    6.37

Published: 25-05-2014 09:48

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