Turnover down 36pc

- POST REPORT, Kathmandu
Turnover down 36pc

Apr 4, 2015-

The transaction at the secondary market slid 36.14 percent to Rs 671.5 million last week along with a drop in the number of traded shares which declined to 1,909,630 units from 2,543,010 over the period.

Bhakta Ram Ghimire, managing director of Imperial Securities, attributed the fall to a weak demand both from the small and big investors. “The small investors have been attracted to invest in the initial public offerings in the recent days, while the big investors are in ‘wait and watch’ situation citing the political development,” he said.

The offering of shares by Upper Tamakoshi Hydropower Project to employees of various financing agencies and members of Employees Provident Fund drew a huge amount. A few other hydro projects also accumulated public money through the initial public offerings.

Along with the transaction, the Nepal Stock Exchange (Nepse) index also fell marginally, dropping 2.21 points to close at 940.09 points last week. The market that opened at 942.3 points on Sunday slid 3.2 points on Monday before regaining 6.64 points on Tuesday. It fell 6.2 points again on Wednesday, before gaining 0.55 points on Thursday.

Of the nine trading groups, the majority witnessed a fall in their indices. With a decline of 63.31 points over the week, the insurance sector was the biggest loser, followed by trading, development banks, hydropower companies and finance companies.

Of the three gainers, indices of manufacturing, hotels and commercial banks rose 17.95, 16.96 and 4.14 points respectively.

Ghimire said more investors were attracted to commercial banks, especially in the wake of a recent Nepal Rastra Bank decision to revise its directives to lower the minimum provisioning rate for loans under the watch list category to 1.5 percent at the end of third quarter. The central bank had earlier set the rate at 5 percent.

Among the individual companies, Prabhu Bank topped both in terms of transaction amount and number of traded shares. The company witnessed a turnover of Rs 44.55 million from transaction of 135,000 shares. Nepal Life Insurance Company, Chilime Hydropower, Global IME Bank and Sunrise Bank (promoters’ shares) completed the top five companies in terms of the biggest turnover amount.

Meanwhile, Nepse registered bonus shares of six companies--Shikhar Insurance, Unique Finance, City Development Bank, Himalayan Bank, Shine Resunga Development Bank and Muktinath Development Bank. The secondary market also registered 918,750 units right shares of Muktinath Development Bank last week.

TOP FIVE COMPANIES IN TERMS OF TURNOVER

Company    Turnover (in Rs millions)

Prabhu Bank     44.55

Nepal Life Insurance     36.55

Chilime Hydropower     32.91

Global IME Bank    29.33

Sunrise Bank (promoters shares)    18.37

SECTORS THAT WENT went UP

Sector    Points Gained

Manufacturing    17.95

Hotels    16.96

Commercial Bank    4.14

SECTORS THAT WENT went down

Sector    Points Gained

Insurance Companies    63.31

Others    22.32

Trading    3.3

Development Bank    2.16

Hydropower Companies     1.34

Finance Companies    0.8

Published: 05-04-2015 09:10

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