Local polls fail to energize investors
KATHMANDU, May 27: Nepal Stock Exchange (Nepse) index went up by a nominal 2.34 points to close at 1,629.58 points on Wednesday - the last trading day of the week.
The market remained closed on Thursday to celebrate Bhote Jatra festival.
The stock market remained largely stable this week as the country awaits results of the first phase of local level units. Unlike earlier elections, neither the election nor its results boosted investors' confidence this time around.
The market remained largely untouched by election, according to observers. “Since bank and financial institutions are still tightening lending toward stocks and interest rates are climbing higher, investors have refrained from buying stocks,” Ram Krishna Bajgain, an investor, told Republica. “Liquidity factor is setting the course of stock market now rather than the election results.”
Even those who used to trade securities regularly are now putting their cash in banks that are offering interest rates of up to 12 percent, according to Bajgain.
Manufacturing and Processing group posted the highest growth of 82.72 points this week to close at 2,464.46 points. Finance sub-index ended 12.96 points higher at 780.65 points. The sub-indices of Development Bank and 'Others' groups also went up 9.51 points and 3.18 points, respectively, to close at 1,970.26 points and 691.23 points.
Insurance group, which has been seeing bullish run in the past few months, tumbled by 23.71 points to end the week at 8,758.75 points. Similarly, Hydropower and Hotels sub-indices also ended 3.21 points and 1.56 points lower at 2,066.16 points and 2,244.74 points, respectively. Banking, the heavyweight trading group in the secondary market, fell 0.74 point to settle at 1,458.17 points. Trading group remained unchanged at 212.76 points.
A total of 4.57 million units of shares of 155 companies worth Rs 2.69 billion were traded in the market this week through 23,735 transactions. The turnover is 4.27 percent higher compared to last week.
Himalayan General Insurance Company Ltd and Lalitpur Finance Company Ltd (Promoter) remained at the top of the list of companies in terms of turnover (Rs 137.68 million) and number of shares traded (444,000 units) this week. Similarly, Mero Microfinance Bittiya Sanstha Ltd was at the top in terms of number of transactions (1,889 units).
Bonus shares of Samata Microfinance Bittiya Sanstha Ltd, Rural Microfinance Development Center, Kamana Bikas Bank Ltd, Kumari Bank Ltd, Asian Life Insurance Company Ltd and Mithila Laghubitta Bikas Bank Ltd were listed in Nepse this week for trading.