Nepse index plunges 28.84 points

- Post Report, Kathmandu

Jun 24, 2018-

Nepal Stock Exchange (Nepse) index plunged 28.84 points to close at 1,218.46 points last week, as investors wait for the authority to implement the full-fledged online trading along with a monetary policy that is likely to come forth this week. As a result, the daily turnover amount stood at a mere Rs224.61 million.  

The market that opened at 1,247.3 points on Sunday declined 14.07 points to close at 1,233.23 points. On Monday, the market index however gained a marginal 1.92 points and closed at 1,235.15 points.

The market witnessed subsequent falls of 8.97 points and 8.34 points on Tuesday and Wednesday respectively before adding up 0.62 points on Thursday. Consequently, the market closed with a downfall of 2.31 percent in the overall trading days.

Stockbrokers attributed the fall in Nepse to the secondary market failing to attract large investors in particular. “As these investors are waiting for the Nepal Rastra Bank to issue the monetary policy, both the Nepse and the turnover amount were discouraging last week,” said a stockbroker under condition of anonymity.

The sensitive index that measures the performance of Group ‘A’ companies also went down 6.06 points to close at 255.75 points with a fall in Nepse of the entire trading groups over the review period.

Along with a fall in the market index, the average value of the shares listed on the stock market also downsized by Rs34.3 billion, as the market capitalisation reached to Rs1,437.50 billion from Rs1,471.80 billion over the week.

The sub-indices of all ten trading groups went down last week. Index of insurance companies slid the largest of 177.28 points to close at 6,175.74 points. Index of hotels fell 46.47 points, microfinance 43.01 points, hydropower 40.84 points and that of manufacturing fell by 38.41 points. Similarly, development bank lost 36.91 points, commercial banks lost 24.98 points and finance companies lost 11.05 points. ‘Others’ and trading faced a fall of 7.98 points and 2.87 points respectively. Of the individual companies, Nepal Bank Limited led in terms of transaction amount. The bank’s shares worth Rs73.36 million were traded last week.

 Likewise, shares of Mega Bank Nepal worth Rs47.4 million were traded over the review period. It was followed by NMB Bank Limited, Grameen Laghubitta Bittiya Sanstha and Unnati Laghubitta Bittiya Sanstha in terms of the largest turnover amount. Similarly, Mega Bank Nepal led in terms of the number of traded shares. There was a turnover of 269,000 units of the bank’s shares at the secondary market.

Last week, stocks of 190 listed companies were traded. Along with a fall in market index, the transaction amount declined 34.72 percent to Rs1.12 billion. The traded number of shares however increased to 4,961,110 units from 4,868,070 units.  

Right Shares/Bonus Shares

Company    Type    Units

Asian Life Insurance Company    Right    4,027,966.20

Neco Insurance Limited    Right    3,920,928.11

Kamana Sewa Bikas Bank    Right    3,094,154.77

First Microfinance Laghubitta Bittiya Sanstha    Right    2,281,313

Central Finance Limited    Right    2,147,005.35

Sindhu Bikas Bank    Right    535,301.4

Nerude Laghubitta Bittiya Sanstha    Bonus    397,800

Published: 24-06-2018 08:37

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