Banking rescues NEPSE
Sharesansar, 12th November:
In the initial hour, Nepal Stock Exchange (NEPSE) continued its yesterday’s correction as the benchmark index came down to the lowest point in 470.61. The slump in the price level of Nepal Doorsanchar Company Limited (NTC) in the beginning caused the fall in the Nepse level which psychologically affected the investors which eventually led to drop in the sub-indices in the initial trading hour. Then, the improvement in the Banking sector from the second hour of the trade helped to rebound the local bourse. Overall, the market index climbed up by 5.35 points to close at 480.84 level.
Mostly, the increment in the price level of Nabil Bank Ltd. (NBL), Everest Bank Ltd (EBL) and Standard Chartered Bank Ltd (SCB) mainly helped to make the U- turn in the Nepse today. The surge in these scrips also created a positive impact among the rest of the scrips in the Banking sector. Among the 27 scrips, which were mostly trading in the red zone in the first hour of trade, traded under this sector only three scrips suffered loss at the end of the day. On the whole, Banking sector made an incline of 10.58 points today.
Similarly, Soaltee Hotel Ltd (SHL), closed at Rs 306, proposal of 20% bonus Share and 32.63% Cash dividend to its shareholders propelled the scrip price by Rs 27 or 9.68% making it the Top Gainer for the day and it also boosted the Hotels sector index up by 36.62 points. Likewise Insurance and Hydro also jumped by 4.04 and 7.62 points respectively. Under Hydro today, Arun Valley Hydropower Development Company Limited (APHL), Butwal Power Co. Ltd. (BPCL) and Chilime Hydro power Co. (CHCL), all the three scrips traded under it, gained by Rs 12, Rs 1 and Rs 10 respectively.
As for two of the remaining Banking and Financial Institutions, Development and Finance came down by 0.62 and 0.18 points respectively. Under Finance, Nepal Aawas Finance Ltd. (NABB) has decided to distribute cash dividend of 10.53%, subject to approval from NRB and its upcoming AGM. Similarly, the decrease in the price level of NTC by Rs 9 dragged the Others sector by 10.57 points.
Overall there were 75 scrips traded among which 42 scrips increased, 10 remain intact and only 23 scrips decreased. The highest loser for the day was Prabhu Finance Company Ltd. (PRFL), closed at Rs 155, with Rs 10 or 6.06%.
In case of highest share traded and turnover, Nepal Bangladesh Bank Ltd. (NBB), closed at Rs 223, topped with 71,330 worth Rs 15,260,050 via 96 transactions. The news of NBB’s BOD appointing a new Chairman for the company and the phasing out of the NB Group from the company’s ownership has recently attracted the investors towards this scrip. From the day the Credit Information Bureau (CIB) blacklisted the Jit Bahadur Shrestha - NB Group chairman, till date the scrip of NBB has made a surge of Rs 56 i.e. 33.53%.
The highest dealing of NBB was done by Broker No 32 (Premier Securities Company Limited) with 54.67%, tallying 39,320 units worth Rs 8,342,640 via 52 transactions.
The total turnover today was 93,315,886 in which Banking occupied 78.94%, Development 2.54%, Finance 1.38%, Insurance 4.55%, Hotels 1.85%, Hydro 8.80% and Others 1.94% . Overall 304,630 units of shares were traded via 1,227 transactions with the market capitalization of Rs 455,316.59 Millions.
