Print Edition - 2019-03-03 | MONEY
Stock investors less than impressed with government policies; Nepse down 7.54pts
Mar 3, 2019-
Nepal Stock Exchange (NEPSE) index last week slid marginally by 7.54 points to close at 1,105.53 points, as investors continued to be less than impressed by the government’s ineffective policies regarding the stock market.The stock market concluded four days of trading with a public holiday on Thursday during the review period. The average daily turnover inched up to Rs199.85 million from Rs198.11 million in the previous week.
The secondary market that opened at 1,113.07 points on Sunday plunged 10.75 points to close at 1,102.32 points, followed by a gain of 7.41 points on Monday. The market again fell by 7.17 points on Tuesday before gaining 2.97 points on Wednesday. Eventually, the market lost 0.67 percent in overall trading during the review period.
Stock analysts attributed the government ineffective policies that failed to address the problems at the stock market for the situation. “Slow progress in implementing the recommendations forwarded by Finance Ministry panel, high interest rate of banks and NEPSE failing to solve the underlying problems in its fully automated system are some of the reasons behind the low buying spree among investors,” said a stockbroker under condition of maintaining anonymity.
The sensitive index that measures the performance of blue chip companies witnessed a slight fall of 1.8 points to close at 234.8 points, with majority of the trading groups landing in the red.
With the latest slump in the market, investors lost around Rs7.5 billion as the market capitalisation shrunk to Rs1,351.18 billion from Rs1,358.68 billion.
Except for manufacturing and trading, the remaining nine trading groups’ indices declined. Hotels lost 37.49 points, the largest loss, to close at 1,684.03 points. Microfinance lost 26.91 points, non-life insurance lost 25.02 points and life-insurance lost 11.69 points.
Likewise, index of development banks went down by 9.51 points, hydropower 8.53 points, finance companies 7.05 points, commercial banks 6.64 points and ‘others’ index was down with 3.15 points.
Manufacturing gained 25.32 points while the ‘trading’ sub group remained stable at 245.2 points throughout the weekdays.
Regarding the individual companies, Nabil Bank posted its shares transaction worth Rs47.52 million, the largest during the review period. It was followed by Nepal Bank Limited, Upper Tamakoshi Hydropower, NMB Bank and NIC Asia Bank.
Last week, stocks worth Rs799.45 million were transacted, which was 19.29 percent less than the transaction volume in the previous week. The total number of traded shares stood at 2,881,878 units during the review period.
Over the review period, Nepse listed 1,403,325 units right shares Everest Insurance Company.
Right Shares/Bonus Shares
Company Type Units
Everest Insurance Company Right 1,403,325
Published: 03-03-2019 11:31