Nepse sees strong growth, up 16.46pts

- Post Report, Kathmandu

Jan 14, 2018-

Nepal Stock Exchange (Nepse) index increased 16.46 points to close at 1,440.29 points last week as investors were buoyed by news of the government’s plan to funnel a portion of its surplus into the banking sector. 

The market opened at 1,423.83 points on Sunday and added 7.97 points to close at 1,431.8 points. On Monday, the market escalated by 12 points to close at 1,443.8 points. Similarly, the market gained 12.27 points on Tuesday before going down by 15.78 points on Wednesday. The market was closed on Thursday to mark a public holiday, National Unity Day. During the review period, the market increased by 1.15 percent.

Stockbrokers attributed the rise in Nepse to the messages conveyed by the government, who is in favour of encouraging the market situation. This led to an increase in investor sentiment. “During an interview, Nepse’s General Manager had expressed the possibility of the government channeling a portion of its surplus into the banking sector which would have increased the amount of loans available to investors. This move could have raised investors’ confidence,” said a stockbroker under condition of anonymity. 

The sensitive index that measures the performance of Group ‘A’ companies also went up 4.02 points to close at 303.68 points with a significant rise in the index of commercial banks along with a majority of other trading groups. 

With a growth in the market index, the average value of the shares listed on the stock market also increased, ensuring investors with a gain of Rs21.76 billion, as the market capitalisation reached to Rs1,682.05 billion from Rs1,660.29 billion over the week. 

Of the ten trading groups, nine observed an upward movement in their indices except for manufacturing. Insurance gained the largest of 152.49 points to close at 7,457.63 points. According to stockbrokers, a number of insurers had announced attractive dividends through their annual general meetings to meet the requirement for paid up capital and this had raised demand for insurance stocks.

Similarly, hotels gained 36.82 points to close at 2,152.57 points. It was followed by development banks (18.83 points), microfinance (17.43 points), commercial banks (13.04 points) and others gained 9.71 points. 

Likewise, hydropower, finance companies and trading added up 5.36 points, 2.72 points and 1.69 points respectively in their indices.  Manufacturing was the only loser during the review period. The group lost 18.2 points to close at 2,506.8 points. 

Of the individual companies, Nepal Life Insurance led in terms of both transaction amount and the number of shares. The company witnessed turnover of Rs237.6 million out of 199,000 units of shares. 

Likewise, Sanima Mai Hydropower Company with observed transactions worth Rs93.66 million to finish in second position. It was followed by Everest Bank, Standard Chartered Bank and Nabil Bank. 

Last week, stocks of 174 listed companies were traded. Along with the rise in market index, the transaction amount also increased by 36.79 percent to Rs1.71 billion. The traded number of shares however declined to 4,105,210 units from 6,479,890 units.  

 

 

Right Shares/Bonus Shares

Company Type Units

Excel Development Bank Right 1,922,812.50

Ngadi Group Power Bonus 486,868

Sanima Bank Bonus 11,036,214.4

Nabil Bank Bonus 18,577,140

Tourism Development Bank Bonus 1,710,775

Published: 14-01-2018 09:29

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