BOOK CLOSURE EFFECTS NEPSE

Sharesansar, 17th March:

The market today made a double digit plunge of 13.19 points to close at 535.21 levels. Last time the local bourse came down by double digit was on 20th January amounting 12.55 points. Despite the end of the prolonged political deadlock of the country through the Chief Justice led government, the book closure of the companies like Nepal Doorsanchar Company Limited (NTC), closed at Rs 604, Nepal Credit And Com. Bank (NCC), closed at Rs 230, and Muktinath Bikas Bank Ltd. (MBBL), closed at Rs 289, today mainly upheld the market from upward movement.

As the NTC has declared a 48% cash dividend and today was the book closure date, the investors seem to have liquidated their scrip according to the current yield they possess from the stock. The decrease in the NTC by Rs 46 or 7.08% mainly triggered the downward movement in the market today. Similarly, the liquidation of the shares of Nepal Credit And Com. Bank (NCC), which has declared 5% bonus share, and Muktinath Bikas Bank Ltd. (MBBL), which has declared 10:3 right share, at a lower level than the preceding closing level even further complemented the downward movement today. Both the scrips closed 4.56% and 1.70% points respectively lower than prior closing level.

However, the turnover in the market today was over the Rs 100 million level, as it stood at Rs 103,916,066 with the amount of share traded tallying around 318,928 units which were carried out by the 1,496 transactions.

Altogether, there were trades of eight sectors today among which Hotels sector only was able to surge by 3.75 points whereas the rest of the sub-indices settled in the red terrain. The Others sector suffered the highest loss of 29.36 points following the drop in the level of Nepal Doorsanchar Company Limited (NTC) by Rs 46. Similarly, the decline in all the three scrips of Hydro resulted in the plummet of 13.72 points in the sector.

Likewise, the dive in the price of Nepal Life Insurance Co. Ltd. (NLIC) and Life Insurance Co. Nepal (LIC) by Rs 30 and Rs 15 respectively, dragged the Insurance sector by 6.39 points.

Whereas, fall in the 24 scrips among the 28 scrips traded under the Banking sector today pulled the sector down by 9.39 points. Only the scrip of Standard Chartered Bank Ltd. (SCB), closed at Rs 1907, was able to gain Rs 2 which helped the scrip to overtake the scrip of Nabil Bank Limited (Nabil), closed at Rs 1904,  by Rs 3. As for Trading, Finance and Development all descent by 1.36, 0.57 and 0.42 points respectively. Under Development, the Nepal Rastra Bank (NRB) approved 26% bonus share of Sahayogi Bikas Bank Ltd (SBBL). Previously,  the bank had proposed 12% bonus share and 15.63% cash dividend for approval to NRB.  

Overall there were trades of 85 scrips among which only 17 scrips increased 13 remained intact and 56 scrips decreased. The highest gainer for the day was, Miteri Development Bank Limited  (MDB), closed at Rs 142, with Rs 6 or 4.41% gain. Whereas the highest loser of the day was, Arun Finance Limited  (ARUN), closed at Rs 33, with Rs 3 or 8.33% loss.

In case of the highest shares traded, Siddhartha Investment Growth Scheme-1 (SIGS1), closed at Rs 11.8, topped with 42,200 units. In terms of turnover, Everest Bank Ltd (EBL), closed at Rs 1623, topped with 7,080 units worth Rs 11,504,976 via 56 transactions; in which Broker no 14 (Nepal Stock House Pvt. Limited) was the most active Broker with 26.87% stand alone dealing of EBL, tallying 1,912 units worth Rs 3,091,120 via 6 transactions which includes 3 matching transactions totaling 1,412 units worth Rs 2,273,320.

TOP FIVE BROKERS FOR THE DAY: http://www.sharesansar.com/listtopbrokers.php