KATHMANDU, Aug 12: Nepal Stock Exchange (Nepse) declined 23.79 points last week amid fall in distributable profits of banks due to an increase in their non performing loans which is evident from the financial statements unveiled by the banks.

 The secondary market has been performing poorly in the past two weeks since the central bank issued the monetary policy. As a result, the daily turnover has shrunk to below Rs 2 billion, while the market index has gone down more than 200 points.  

Last week, the secondary market opened at 2,089.84 points on Sunday while it closed at 2,066.05 points on Thursday. During the period, the index went as high as 2,101.42 points and as low as 2,000.51 points, taking the market to the volatility of 76.61 points.

In five day-trading, the index dropped in the first three consecutive days, while it gained in the latter two days of the trading days. The market started the week on a negative note, declining by a notable 38.37 points on Sunday. On the following day, the market slid by a marginal 3.21 points. 

On Tuesday too, the market dropped 28.40 points. On Wednesday and Thursday, the market however increased by 41.06 points and 5.13 points, respectively.

Despite a fall in the market index, the total turnover amount increased to Rs 10.802 billion from Rs 9.879 billion in the previous week. This shows that the transaction volume increased by 9.34 percent.

The average daily turnover amount also increased to Rs 2.16 billion from Rs 1.975 billion during the review period.

Four out of 13 trading groups were successful in adding values in their market prices. Hotels and tourism gained the largest of 128.05 points. Similarly, non-life insurance gained 111.69 points, followed by ‘trading’ and others. Microfinance, with a decline of 63.59 points, topped in terms of losers.

Among individual companies, IME Life Insurance Limited had the biggest turnover of its shares worth Rs 886.18 million. Vijaya Laghubitta Bittiya Sanstha Limited witnessed the highest of 11.51 percent. Nepal Republic Media Limited earned the highest 18.61 percent in its share price.  

The market capitalization further shrunk to Rs 3.061 trillion from Rs 3.071 trillion during the review period. As a result, the investors lost Rs 10 billion from their investment portfolio in the share market. In the previous week, investors had lost Rs 53 billion in total from their share transactions.

 
• Nepse
 
• weekly_review