Nepse dips in 1st week after quake

- POST REPORT, Kathmandu
Nepse dips in 1st week after quake

May 30, 2015-

Nepal Stock Exchange (Nepse) last week plunged 67.86 points to close at 841.96 points.

The market, which opened on Sunday at 909.82 points after remaining closed for almost a month after the April 25 earthquake, slid below 900 points on Monday. The benchmark index continued to lose points for the following two days before recovering 4.13 points on Thursday.

Rabindra Prasad Nuchhe Pradhan, managing director of Premier Securities, said the fall was expected. He said the selling pressure was huge in the banking group initially. “But demand for selected companies like Bank of Kathmandu, Chilime Hydropower, Nepal Investment Bank and Nepal Bangladesh Bank helped the index rise.”

Of the nine trading groups, six posted losses. Hydropower and insurance groups shed 190.8 points and 148.8 points, respectively. They were followed by commercial banks, development banks, manufacturing and finance companies.

The fall in the insurance sub-index has been attributed to overwhelming claims non-life insurers have been receiving in the aftermath of the earthquake. Investors were also sceptic about the hydropower sector, which faced a massive damage due to the quake, stockbrokers said.

Only two groups -- others (up 22.32 points) and trading (up 1.22 points) -- were able to post gains. The hotel sub-index was stable at 1,943.62 points. The sensitive index that measures the performance of blue chips fell 15.89 points to close at 179.9 points. Nepal Life Insurance posted the highest individual turnover of Rs 88.87 million. Prabhu Bank (promoters shares), Chilime Hydropower, Nepal Life Insurance (promoters shares) followed. The week saw transactions of shares of 111 companies. The market realised a turnover of Rs 745.7 million from the trading of 1,914,710 shares.

Meanwhile, Nepse listed bonus shares of five companies -- Civil Bank, Kathmandu Finance, Shuvechchha Development Bank, Sewa Development Bank and Gaumukhi Development Bank. In addition, 515,200 right’s shares of Sewa Development Bank were also listed.

TOP FIVE COMPANIES IN TERMS OF TURNOVER

Company                                        Turnover (in Rs millions)

Nepal Life Insurance Co                     88.87

Prabhu Bank (Pro shares)                 64.72

Chilime Hydropower Co                      57.55

Nepal Life Insurance (Pro shares)    36.39

Everest Bank                                           35.15

SECTORS THAT WENT went up

Sector    Points Gained

Others      22.32

Trading    1.22

SECTORS THAT WENT went down

Sector                                     Points Gained

Hydropower Companies     190.8

Insurance Companies        148.8

Commercial Bank                 95.02

Development Bank                36.39

Manufacturing                        19.00

Finance Companies              8.32

 

Published: 31-05-2015 07:45

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