Nepse ends 3.48 points lower

- Post Report, Kathmandu

Jul 10, 2016-

In expectations of a favourable monetary policy, which is to be announced this week, investors in the Nepal Stock Exchange (Nepse) channelled their investments in the finance sector last week, according to stockbrokers.

“Talks have surfaced that the Nepal Rastra Bank (NRB) is considering increasing capital base of the 

microfinance sector, and that boosted the investor confidence,” said Bishnu Sapkota, managing director of NEEV Securities. “Investors are also facing pressure to settle interests as year-end approaches. This has also helped the finance sector’s profit growth in the fourth quarter.”

According to Sapkota, upcoming mergers between development banks and finance companies will also add up to the growth index. 

The insurance sector, which was 

a hotcake a month ago, has observed 

a downfall in its index over the past 

few weeks.

Last week, the benchmark Nepse index lost 3.48 points to close in at 1,715.72. Out of nine trading groups, 

five posted gains. The group representing finance companies (up 45.34 points) led the gainers’ side, including manufacturing, hotel, others and commercial banks. The insurance sector shed 191.73 points. “The delay in the paid-up capital hike of insurance companies along with profit booking led to the downfall in the index,” said Prakash Tiwari, financial analyst at Hathway Investment. “ As soon as the pending decision regarding the capital hike is taken, the sector will see a growth.”

The sensitive index that measures the performance of class ‘A’ companies saw a decline of 1.05 points.  

The total transaction volume fell by 28.16 percent to Rs6.01 billion from Rs8.38 billion last week. Rastriya Beema Company (promoter’s shares) topped in terms of the highest individual turnover (Rs274.26 million).

Meanwhile, the exchange listed bonus and rights shares of Metro Development Bank, and general shares of Tinau Development Bank.

Out of nine trading groups, five posted gains. The group representing finance companies (up 45.34 points) led the gainers’ side, including 

manufacturing, hotel, others and commercial banks

 

TOP FIVE COMPANIES IN TERMS OF TURNOVER

Company    Turnover (in Rs. millions) 

Everest Bank    374.37

Lumbini General Insurance    321.8

Nepal Bangladesh Bank    286.66

Nepal SBI Bank    280.24

NMB Bank    259.61

SECTORS THAT WENT UP

Sector    Points Gained

Finance       45.34

Manufacturing      44.56

Hotel       7.83

Others       4.7

Published: 10-07-2016 12:01

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