Confusing political talks weigh on stock market
KATHMANDU:
Confusion regarding political parties reaching a common ground on the new constitution continued to dampen the spirit of investors. Hence, Nepal Stock Exchange (Nepse) dipped by 9.25 points or 1.07 per cent week-on-week to rest at 853.76 points, from November 30 to December 4.
“The current market movement really has been governed by speculations on political developments,” said Bhishma Raj Chalise, chief executive of Civil Capital. According to him, the stock market should have stabilised at this point in time, yet rookie investors continue to book profits, causing the downturn.
The benchmark index that had opened at 863.01 points on Sunday had shed 6.13 points by the day’s closing. Nepse continued on the southbound course on Monday and Tuesday, dipping by 5.45 points and 5.02 points, respectively. The local bourse recovered slightly in the last two trading days, adding 3.75 points and 3.6 points. However, it was insufficient to make up for the losses incurred earlier in the week.
The country’s only secondary market witnessed trading of 2.03 million shares of 157 companies through 8,964 transactions worth Rs 791.70 million in the week. The traded amount was 25.08 per cent higher compared to the previous week when 5,822 transactions of 152 companies worth Rs 634.41 million had been undertaken.
The sensitive index, which shows the performance of class ‘A’ stocks, declined by 1.18 points to 183.12 points. Similarly, the float index that measures the performance of shares actually traded also dipped by 0.66 points to rest at 59.37 points for the week.
Whereas trading remained constant at 184.72 points, manufacturing was the only subgroup that recorded a gain in the week, adding 8.68 points to 1,242.27 points. This was on the back of Unilever Nepal’s share value going up by Rs 100 to Rs 15,500.
The insurance subgroup continued to lead the pack of losers for yet another week, diving by 112.92 points to 3,646.39 points. Rastriya Beema Sansthan’s share value plunged by Rs 239 to Rs 4,700, while that of Life Insurance Co Nepal declined by Rs 164 to Rs 3,100, among others.
The hydropower subgroup, which had gained a hefty 33.28 points in the previous week, lost 42.29 points to close at 2,094.79 points. Butwal Power Co’s shares were priced at Rs 588, down Rs 35 from the previous week’s close. Similarly, Chilime’s share value slid by Rs 19 to Rs 1,531.
With Citizen Investment Trust’s shares priced at Rs 2,800, less by Rs 150 week-on-week, the finance subgroup was down 10.06 points to 462.6 points.
Development banks shed 6.2 points to land at 653.32 points. First Microfinance Development Bank’s share value was down Rs 101 to Rs 781, while that of Laxmi Laghubitta Bittiya Sanstha dipped by Rs 69 to Rs 590, among others.
Banking, the subgroup with majority stake in market capitalisation, contracted to 741.81 points, down 4.69 points. Although Nabil Bank’s share value rose by Rs 18 to Rs 1,714, Nepal Investment Bank’s share value dipping by Rs 21 to Rs 669 and Machhapuchchhre Bank’s shares valued at Rs 482, down Rs seven pulled the sub-index down.
Hotels subgroup, which had added 7.8 points in the preceding week, lost 3.95 points to settle at 1,888.72 points this time around. Oriental’s shares took a beating by Rs 44 to land at Rs 610, while Taragaon Regency’s fell by Rs 23 to settle at Rs 260 for the week.
Nepal Telecom’s share value dipped by Rs two per unit to Rs 598, due to which the others subgroup lost 2.35 points to rest at 702.56 points.
Nabil Balanced Fund–I was the forerunner in terms of number of shares traded with 251,000 of its scrips changing hands, whereas Laxmi Laghubitta Bittiya Sanstha with 826 dealings secured the first place in number of transactions.
Nepal Life Insurance booked the top spot among companies with highest turnover in the week with Rs 47.1 million. Chilime Hydropower was close on its heels with Rs 46.44 million, followed by Everest Bank with Rs 33.8 million. National Life Insurance (Rs 29.89 million) and Life Insurance Co Nepal (Rs 29.55 million) rounded up the top five in this category.
Nepal Bank Ltd listed 24.99 million ordinary shares, while Civic Development Bank and Alliance Insurance Co listed 100,000 and 892,692 rights shares, respectively, during the week.
Source: THT
