KATHMANDU, Aug 11: Nepal Stock Exchange (Nepse) benchmark index fell 11.52 points this week to close at 1,653.53 points on Thursday -- the last trading day of the week.
The stock market, which was posting gains till last week following a long slump, again took a dive this week. Analysts say that the correction was mainly due to profit booking mentality of investors.
“The stock market was on gaining run till last week after long-running recession. But the market went into a correction mode this week, which is normal phenomenon in the market, as investors try to cash in on the rise in stock prices,” a stockbroker told Republica.
Though the benchmark index took a dive this week, analysts say that investors are buoyed by news reports about rise in deposit growth of bank and financial institutions (BFIs) that have tightened lending due to shortage of fund. As listed companies, particularly BFIs, are making public their annual financial results, investors are also impressed by their performance and rise in profits. The expectation of better returns based on financial results has boosted confidence of investors, analysts say.
The market remained opened only for four trading days this week as the stock exchange was closed on Tuesday to mark the Gaijatra festival.
Hydropower group observed the highest loss of 25.65 points this week, closing at 1,917.23 points on Thursday. Development Bank group also saw its sub-index go down by 20.97 points to close the week at 2,063.61 points. Banking, the heavyweight group trading group, ended 16.91 points lower at 1,433.14 points. Similarly, the sub-indices of Manufacturing and Processing, and Insurance groups also fell 16.24 points and 4.65 points, respectively, to settle at 2,752.91 points and 9,397.48 points. Hotels group, however, bucked the trend, posting a gain of 16.54 points to close the week at 2,507.7 points. Finance and 'Others' groups also ended in the green zone with their sub-indices going up by 11.31 points and 8.67 points, respectively, to 822.51 points and 722.46 points. Trading sub-index remained unchanged at 214.11 points.
Citizen Investment Trust led the listed companies this week in terms of turnover (Rs 195.3 million), while Siddhartha Investment Growth Scheme was at the top in terms of number of shares traded (3.13 million). Similarly, Nepal Life Insurance Company Ltd topped the list of companies in terms of number of transactions (1,761).
A total of 12.1 million units of shares of 168 companies worth Rs 3.82 billion were traded in the market this week through 34,773 transactions. The turnover is 27.3 percent lower compared to last week.