KATHMANDU, Nov 18: Nepal Stock Exchange (Nepse) benchmark index rebounded 11.92 points this week to close at 1,489.06 points on Thursday, the last trading day of the week. The stock market has recovered after taking a dive of nearly 53 points in the last two weeks.
The stocks remained volatile throughout the week.
While the benchmark index was climbing upward in the first three trading days, there was slump in the remaining two trading days of the week.
According to stock brokers, there was pressure of both buying and selling of shares. “While there are investors who want to offload their shares amid slump in the market in recent weeks, there are also those who think that this is an opportunity to get hold of shares at lower prices,” said a broker, who did not want to be named due to recent instruction from the Securities Board of Nepal (Sebon) to not make media comments about rise and fall of the stocks.
The market has been on a free fall in recent months amid rise in interest rates of bank and financial institutions (BFIs), surge in supply of stocks due to generous stock dividend, and rights issue from bank and financial institutions and insurance companies who are pressed to raise minimum paid-up capital and disappointing performance of most of the BFIs who have seen their profit growth-rate falling.
Even the election fever that has gripped the country has failed to buoy investors. While the polls have been historically driving up stock prices, the recent announcement by two major communist parties to form electoral alliance and ultimately unite has apparently scared investors, who fear that such 'left alliance' would not be friendly to the capital market.
A total of 6.83 million units of shares of 180 companies worth Rs 2.93 billion were traded in the market this week through 29,330 transactions. The turnover was 15.6 percent higher than that of the last week.
Manufacturing and processing group registered the highest gain of 70.91 points to close at 2,470.24 points. Hydropower group also jumped 60.45 points to close at 1,873.17 points. The 'others' group also ended 26.6 points higher at 841.6 points. Banking, the heavyweight group, also registered a gain of 8.78 points to finish at 1,270.7 points. Insurance group, however, fell 45.53 points to close at 8,047.69 points. Sub-indices of hotels and development bank groups fell 38.32 points and 16.27 points, respectively, to end at 2,141.22 points and 1,749.98 points. Trading group shed 4.05 points and ended at 214.95 points. Finance group also went down 1.93 points to settle at 755.68 points.
Chilime Hydropower Company Ltd topped the list of companies in terms of highest turnover (Rs 162 million) while Prabhu Bank Ltd (Promoter) group remained at the top in terms of number of shares traded (698,000 units). Nepal Grameen Bikas Bank Ltd was the top company in terms of highest number of transactions (1,609).
Rights shares of Sunrise Bank Ltd, Kankai Bikas Bank Ltd, Goodwill Finance Ltd, and Kamana Sewa Bikas Bank Ltd were listed in Nepse this week for trading in the secondary market. Similarly, bonus shares of Prime Life Insurance Company Ltd and Nepal Insurance Company Ltd were also listed in Nepse this week.