In the week that extended from Sunday to Thursday, that included a public holiday on Tuesday, Nepal Stock Exchange (Nepse) recorded share transaction of Rs 165.79 million, down from Rs 433.50 million recorded in the previous week. [break]
“The fall in trading amount is a normal phenomenon during the festive season as investors who purchase or offload shares cannot transfer ownership of stocks or receive payment due to closure of the stock exchange, which conducts clearing and settlement of securities,” Anjan Poudel, president of Stock Brokers Association, said.
Nepse, which on Thursday conducted its last regular trading prior to Dashain holidays, will remain closed until October 29.
“Since the holidays are quite long this year, many investors just stayed away from the stock market causing the trading volume to plunge,” Poudel said.
Despite the drop in trading volume, stock market traded on a firmer ground over the week, as the benchmark index, which opened at 424.44 points on Sunday, rallied 2.9 percent, or 12.26 points, to close at 436.7 points on Thursday.
The index received a boost as stock prices of banks, which contribute to over 50 percent of the total market capitalization, rose over the week. Standard Chartered Bank Nepal, for instance, added Rs 45 to its share value during the week to close at Rs 1,770 on Thursday.
Stock prices of other banking heavyweights like Nabil Bank also rose by Rs 40 to end the week at Rs 1,165, while share prices of Everest Bank gained Rs 42 to close at Rs 1,171 for the week. Shares of Himalayan Bank and Nepal Investment Bank also closed higher on Thursday.
These gains posted by major banks gave a push of 12.21 points to the banking index, which ended the week at 367.62 points.
The hydropower index also closed 29.91 points higher during the week and reached 930.96 points on Thursday, as shares of Chilime, Butwal Power and Arun Valley went up.
Over the week, shares of Chilime Hydropower gained Rs 36 to end at Rs 990. Shares of Butwal Power Company, on the other hand, added Rs 20 to its share value to close at Rs 770 on Thursday, while stocks of Arun Valley Hydropower ended the week at Rs 344, up Rs 4 from Sunday´s opening price.
“Stock prices of these listed companies were boosted by improved mood of few investors. In general, most of the investors are still staying away from the stock market due to the festival season and to meet loan installment deadline of mid-October (i.e. the end of the first quarter),” Poudel said.
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