Nepse inches up marginally

- Post Report, Kathmandu

May 14, 2017-

Nepal Stock Exchange (Nepse) increased marginally by 5.4 points to close at 1,658.58 points last week, with investors staying away from the market citing a myriad of reasons, from uncertainty of the country’s political situation to the government’s inability in announcing the budget.

The secondary market opened at 1,653.18 points on Sunday and promptly plunged 24.2 points to close at 1,628.98 points. On Monday, the market gained 8.32 points to close at 1,637.3 points, followed by a gain of 13.51 points on Tuesday. 

Following the public holiday on Wednesday, the market index added 7.77 points on Thursday, the last day before the local election that has been scheduled for Sunday. On average, the market inclined up 0.32 percent last week.

Anjan Raj Poudel, managing director of Thrive Brokerage House, said the capital market last week was mainly affected by political developments along with the controversy surrounding the date of the government budget announcement on account of the local election. “In addition, the uproar made by Tarai-based political parties demanding an amendment to the constitution before elections shook investors’ confidence”, Poudel said.

Along with the Nepse index, the sensitive index that measures the performance of Group ‘A’ companies also inched up 0.24 points to close at 353.79 points. The slight drop in the sensitive index was due to losses in the commercial banks sub-index, the group that holds a lion’s shares in the secondary market.

With the rise in Nepse index, the average value of the shares listed in stock market also rose Rs8.47 billion, with market capitalisation increasing to Rs1,925.65 billion from Rs1,917.18 billion over the week. 

Except commercial banks, indices of the remaining nine trading groups posted gains last week. Hydropower witnessed the largest gain of 115.25 points to close at 2,108.59 points. Poudel said the rise in the group’s index was due to a number of hydropower companies posting good amount of profit in their third quarter report. According to him, investors were also attracted by the shares of Butwal Power Company that will be issuing its further public offerings shortly. 

The hotel sub-index followed in second place of highest gainers, posting a gain of 66.34 points to close at 2,258.06 points. Insurance group gained 37.34 points, ‘others’ gained 19.38 points, development bank gained 16.24 points, manufacturing gained 13.31 points while the sub-indices of finance companies and trading rose 3.91 points and 1.41 points respectively.

 Commercial bank sub-index was the only losing group of last week. The group shed 9.32 points to close at 1,500.86 points.

Last week, Nepal SBI Bank observed the largest turnover of shares worth Rs176 million. According to Poudel, investors were attracted to stocks of the bank as the company observed book close along with offering 40 percent right shares. 

Similarly, Sunrise Bank’s stocks worth Rs137.06 million were transacted. Sanima Mai Hydropower, Nepal Life Insurance and Prabhu Bank were also among the top five companies in largest turnover. 

Likewise, promoters’ shares of World Merchant Banking and Finance Limited, with 497,000 units traded, topped in terms of number of transacted shares. 

Last week, the shares of 153 listed companies were traded. Despite a small rise in Nepse, the transaction amount dropped 17.57 percent to Rs2.80 billion. The traded number of shares also declined to 4,994,170 from 5,384,790 units.  

Right Shares/Bonus Shares

Company    Type    Units

Om Development Bank    Bonus    3,074,321

Manaslu Bikas Bank    Bonus    330,354

Mega Bank Limited    Bonus    5,315,940.74

Sewa Bikas Bank    Bonus    808,554.88

Sewa Bikas Bank    Right    5,106,662

Mega Bank Limited    Right    386,882

Synergy Power Development Limited    General    7,000,000

Forward Community Microfinance     General     2,000,000

Published: 14-05-2017 08:50

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