KATHMANDU, May 13: Nepal Stock Exchange (Nepse) benchmark index fell 5.19 points last week to close at 1,348.45 points on Thursday—the last trading day of the week.
Stocks are on a downward trend amid high interest rates of bank and financial institutions (BFIs) due to shortage of lendable fund in the banking system. Though investors hope that the rise of government spending at the end of the current fiscal year will help in easing liquidity pressure, the correction of interest rates is likely to take some time.
Even the better financial results published by BFIs have failed to impress investors. Almost all BFIs and other listed companies have published their third quarterly unaudited financial results of the current fiscal year. Most of them have registered growth in their net profit.
“The quarterly results seemed to have not made much impact on the trading decision of the investors. As the interest rates are still on the higher side, the stocks have taken long time for solid recovery,” said a broker.
“As the liquidity situation in the banking sector is expected to ease in the last quarter when the government ramps up development works, stock market may be back toward green zone,” the broker added.
All trading groups registered loss in the week. Hotels group suffered the highest loss of 39.91 points to close at 1,957.26 points. Insurance group fell 18.45 points to settle at 7,011.76 points. Manufacturing and processing group shed 17.8 points and 2,288.19 points. Sub-indices of Hydropower and Development Bank also went down 17.9 points and 10.03 points, respectively, closing at 1,666.46 points and 1,571.1 points. Finance group also registered a loss of 9.08 points to close at 659.61 points. Microfinance group ended 7.18 points lower at 1,742.93 points. 'Others' and 'Trading' groups also slid 5.97 points and 5.83 points, respectively, closing at 746.22 points and 197.62 points. Banking also went down 1.8 points and finished at 1,157.96 points.
A total of 4.81 million units of shares of 181 companies worth Rs 2.19 billion were traded in the market last week through 29,319 transactions. The turnover is 27.76 percent higher than the last week.
Butwal Power Company Ltd led the list of companies in terms of turnover (Rs 127.3 million) and number of transactions (3,935) while Civil Bank Ltd remained at the top in terms of traded shares (638,000 units).
Bonus shares of Kankai Development Bank Ltd and rights shares of Kabeli Bikas Bank Ltd and Shree Investment and Finance Company Ltd were listed in Nepse for secondary market trading.