Nepse gains 9.25pts on 3Q report

- Post Report, Kathmandu

May 15, 2016-

The Nepal Stock Exchange (Nepse) jumped 9.25 points to close at 1,481.94 points last week. 

Along with inclining index, the transaction volume also increased by a whopping 66.11 percent. 

The market that opened at 1,472.69 points on Sunday maintained an upward trajectory for the next two trading days. It lost 2.86 points on Wednesday, but made up 0.76 points on Thursday.

Stockbrokers said the positive note in the secondary market was due to the growing possibility of timely announcement of budget and a good financial health of a number of listed companies in their third quarterly report. 

Sharada Nepal, managing director of Sagarmatha Securities, said the market tend to be stable with the fiscal year nearing closure. “Last week, the market was affected by the rumour of change in government that tempted the investors to sell their stocks,” said Nepal, referring to the huge transaction volume over the week.

According to Raju Acharya, managing director of Asian Securities, a number of companies with good amount of profit booking in the third quarterly report along with indication of timely budget announcement have boosted the market.

Indices of all but one of nine trading groups have registered growth. Insurance witnessed the highest growth of 422.49 points on its index, followed by hotels, manufacturing, finance companies, hydropower, development banks and ‘others’.

With a downfall of 10 points, commercial banks were the only losers in the week. Nepse of trading group was stable at 201.38 points throughout the weekdays. The sensitive index that measures the performance of ‘A’ class companies also increased 1.51 points to close at 320.58 points.

Apart from Nepse, the transaction volume also jumped from Rs3.18 billion to Rs5.28 billion. However, there were fewer turnover of shares over the week, falling to 414,470 units from 5,006,680. 

Regarding the individual company, NIC Asia Bank led the table in terms of transaction volume. The market witnessed a turnover of company’s shares worth Rs460.63 million. Nepal Bangladesh Bank, Nepal Bank, Life Insurance Corporation Nepal and Citizens Bank International completed the top five under the category.

At 746,000 units, Nepal Bank topped the chart for the transaction of number shares. Meanwhile, Nepse listed bonus shares of Sahara Bikas Bank, International Development Bank, Reliable Microfinance Development Bank and Siddhartha Bank during the review period. 

TOP FIVE COMPANIES IN TERMS OF TURNOVER

Company    Turnover (in Rs. millions) 

NIC Asia Bank    460.63

Nepal Bangladesh Bank    426.69

Nepal Bank    354.57

Life Insurance Cor Nepal    219.40

Citizens Bank International    202.05

SECTORS THAT WENT UP

Sector    Points Gained

Insurance Companies    422.49

Hotels    22.66

Manufacturing    15.56

Finance Companies    7.48

Hydropower Companies    6.72

Development Banks    5.88 

Others    1.18

SECTORS THAT WENT DOWN

Sector    Points Gained

Commercial Banks    10

Published: 15-05-2016 08:13

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