Nepse up 29.37 points ahead of budget

- POST REPORT, Kathmandu
Nepse up 29.37 points ahead of budget

Jul 5, 2014-

Nepal Stock Exchange (Nepse) posted a whopping growth of 29.37 points last week to close at 972.85 points. The benchmark index, which opened at 943.48 on Sunday, posted gains throughout the week, with the biggest single-day gain of 15.88 points on Wednesday. Impressive growth in insurance, hydropower and commercial bank sub-indices pushed the overall market up.

Ram Chandra Bhattarai, director at Aryatara Investment and Securities, said rumours that insurance companies would increase their paid-up capital and issue bonus shares boosted the insurance sub-index, which rose 387.8 points over the week.

Hydropower Companies too saw a three-digit growth of 217.86 points, followed by finance companies, development banks, commercial banks, others and manufacturing. Bhattarai said inve-stors’ willingness to diversify their investment with an expectation that the government would bring suitable policies in the budget also helped the market grow.

The indices of hotels and trading, however, lost 40.08 points and 3.21 points, respectively. The sensitive index, which measures the performance of ‘A’ class companies, inched 5.42 points up to close at 207.81 points.

Chilime Hydropower Company posted the largest individual transaction of Rs 294.512 million. It was followed by Arun Valley Hydropower Company, Nepal Credit and Commercial Bank, Life Insurance Company Nepal and Asian Life Insurance Company Nepal. Siddhartha Investment Growth topped in terms of the number of shares traded (1,431,980 units).

Along with the rise in the benchmark index, the market turnover also soared massively. The overall transaction rose 46.45 percent to Rs 3.21 billion. However, the number of traded shares fell to 8,128,090 from 12,475,670. Transaction of ‘A’ class companies stood at Rs 1.34 billion, 41.74 percent of the total market transaction.

Nepse last week listed bonus shares of five companies — Fewa Finance, Nepal Awas Finance, Clean Energy Development Bank, Pacific Development Bank and Bhrikuti Development Bank. Right shares of Butwal Power Company and Arun Valley Hydropower Company were also registered.

TOP FIVE COMPANIES IN TERMS OF TURNOVER

Company    Turnover (in Rs millions)

Chilime Hydropower Co    294.512

Arun Valley Hydropower Co    208.054

Nepal Credit and Commercial Bank    148.174

Life Insurance Company Nepal    142.031

Asian Life Insurance Company    99.641

SECTORS THAT WENT up

Sector    Points Gained

Insurance Companies    387.8

Hydropower Companies     217.86

Finance Companies     46.62

Development Banks    20.37

Commercial Banks    7.43

Others    5.87

Manufacturing    0.75

SECTORS THAT WENT down

Sector    Points Gained

Hotels    40.08

Trading    3.21

Published: 06-07-2014 10:58

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