The total market turnover for the week increased by a staggering 176.70%; however, more than 78% of the turnover can be attributed to the trading of promoter shares. The actual total turnover for common shares amounted to Rs. 205,533,153 - a decline of 40.40% compared to last week. Despite the large turnover in the market, the NEPSE dipped to end the week at 684.39 points (-2.07%) as investors liquidated some of their holdings to generate cash for investing in the primary market.
Among the sectors, Hydropower (+3.14%) was the biggest gainer driven mainly by Chilime Hydro Power. With its IPO being issued next week, speculation caused Chilime´s price to fluctuate throughout the week. Insurance (+ 0.68%) was the only other sector to register a gain. All remaining sectors edged down, with the ´Others´ sector (-4.35%) decreasing the most as Nepal Telecom (- 4.35%) continued its decline. This largely contributed to the fall in the NEPSE.
The Development Banking sector declined by 3.80% mainly due to readjustment in the share price of Excel Development Bank after its book closure for 1:3 rights shares. Imperial Finance and Central Finance also had their share price adjusted after book closure for 1:1 and 4:1 rights shares respectively bringing the Finance sector down by 3.23%.
Nepal Share Market, which dragged down the Finance sub-index as well, is having its book closure on June 15 for issuance of 1:3.629 rights shares. Losses in the sector were minimized due to increases in Standard Finance and Merchant Finance. The Commercial Banking sector (-1.53%) declined the least among the sectors for the second consecutive week.
The secondary market might continue to witness a temporary decline in activity as investors remain focused on the primary market. Meanwhile, Citizens International Bank and Bank of Asia began trading on the stock exchange from Thursday and closed at Rs. 572 and Rs. 474 respectively.
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