Print Edition - 2014-08-10 | MONEY
Stock market dips 15.84 points
Aug 9, 2014-
The stock market last week dipped 15.84 points to close at 1040.59 points as Nepal Stock Exchange (Nepse) took action against stockbrokers failing to clear transactions timely. The market turnover increased 19.15 percent to Rs 2.43 billion, but the number of traded shares declined to 5,242,740 from 6,842,250.
Brokers say Nepse’s action against them hit inventor sentiments and created doubts they might not be able to receive share certificates and cash timely. The brokers said the delay in clearance was due to huge turnover over the last few weeks.
Nepse had suspended four brokering firms, including Arun Securities, Primo Securities, Midas Stock Brokering Company and Swornalaxmi Securities.
Niraj Maharjan of Midas Stock Brokering Company said investors’ concerns that they might not get their money in time discouraged them to invest. “The manual system of clearance is the main reason behind the delay,” he said. “Teh system cannot handle large transaction volumes.”
Over the last week, the benchmark index declined 17.4 points on Monday, before recovering 5.71 points on Tuesday. However, it again lost points for rest of the week.
Out of nine trading groups, seven saw their sub-indices fall. Insurance group (down 51.37 points) was the top loser, followed by hydropower, hotels and finance companies. Manufacturing sector was the only gainer, while the trading group sub-index remained stable.
The sensitive index that measures the performance of blue chip companies fell 3.49 points to close at 223.03 points. Chilime Hydropower topped in terms of transaction worth (Rs 152.57 million). Nabil Balance Fund topped in terms of the number of shares traded (593,000 units).
TOP FIVE COMPANIES IN TERMS OF TURNOVER
Company Turnover (in Rs millions)
Chilime Hydropower Co 152.57
Nepal Bank 142.05
Global IME Bank 103.40
Siddhartha Bank 95.90
Citizens Bank 80.29
SECTORS THAT WENT up
Sector Points Gained
SECTORS THAT WENT down
Sector Points Gained
Insurance Companies 51.37
Hydropower Companies 30.31
Finance Companies 20.54
Commercial Banks 18.38
Development Banks 0.6
Published: 10-08-2014 10:08