Bulk selling pushes transaction volume up
KATHMANDU, June 24:
Profit booking by investors drove transaction amount up but the index has reverted back to the old days remaining almost stationary this week –– June 17 to 21.
The benchmark index of Nepse gained a measly 0.47 points in the week’s trading while transaction volume rose to 78.08 per cent. Investors who purchased shares during the lean days of the stock market sold their shares in bulk to take advantage of the recent surge before the stock market slips to its old ways.
Moreover, with the end of the fourth quarter approaching, investors have started selling their shares to make interest payments of their outstanding loans to banks which also pumped up the trading volume at the stock exchange.
The stock exchange witnessed trading worth Rs 301.8 million of more than one million unit shares belonging to 111 companies in 7467 transactions in the week. Likewise, the volume of trading of stocks belonging to class ‘A’ companies consisted of 68.56 per cent of the total transaction worth Rs 206.9 million.
The sensitive index which measures the performance of blue chip stocks went up by 0.18 points. Likewise, the indicator of the performance of actual shares traded –– float index –– also went up by 0.08 points to 29.03 points.
The market that opened at 364.67 points on Sunday morning went down to 360.99 points by the end of trading that day. But the index picked up from Monday and inched gradually to 365.14 points, at the end of the week. The stock prices of commercial banks, hydropower companies and trading companies were able to register gains while the rest ended up in the red.
Hydropower subgroup was the biggest gainer of the week with a gain of 15.31 points. Likewise, banking and trading subgroup earned 2.07 and 2.7 points, respectively. Due to Nepal Telecom, others went down by 5.88 points making the subgroup the biggest loser of the week.
Hotels that had been posting gains in the last few weeks became the biggest loser with a loss of 18.99 points. Commercial banks, development banks, finance companies and insurance companies lost 7.12 points, 5.93 points 3.7 points and 3.48 points, respectively.
This week, Everest Bank toppled Bank of Kathmandu with the highest volume and number of transactions with trading of shares worth Rs 117.4 million in 1928 transactions. In the number of shares traded, Citizens Bank International topped with trading of 138,145 unit shares.
The top five performers of the week at Nepse were Everest Bank (Rs 117.4 million), Bank of Kathmandu (Rs 26.48 million), Citizens Bank International (Rs 13.84 million), Chilime Hydropower (Rs 12.211 million) and Himalayan Bank (Rs 10.84 million).
This week, the government’s 6.5 billion units of Development Bond 2071 ‘gha’ were listed at the stock exchange.
Source: THT
