ELECTION PROPELS NEPSE TO SUSPENSION

Sharesansar, 21st Novemeber:

Buoyed by the ongoing election results, the market today sky rocketed up by astounding 33.88 or 5.64% points resulting in trading suspension for the day.  

Following the resumption of the market after the election holidays, the NEPSE came to hit 3 percent circuit at 12:12 PM. Then after the cool down for 15 minutes, the market again halted for yet another 30 minutes from 12:27 PM, after witnessing  4 percent surge.

Despite numerous halts, the market observed 5 percent circuit at 1:16 PM, triggering market shutdown for the day--The trading gets halted at the only stock market of the country if the benchmark index rises by 5 percent in a day.

By the end of today’s trading, the market came to close at 643.3 levels which is the new four years’ high. The last time the market had witnessed this level was on October 5, 2009.

Earlier, the market hit the circuit break was on 21st July, 2013 which was for only 3 percent surge whereas this is the second time the NEPSE has hit the 5 percent circuit break this year.

The last time the 5 percent circuit was on February 17 when the positive political development in the country had immensely boosted the investors’ confidence in the market after the then Chief Justice Khila Raj Regmi gave nod to lead an interim government to hold the CA election.

Before that the NEPSE had witnessed 5 percent circuit break in June 3, 2012.

Looking at the today’s market movement, there were significant numbers of buyers at higher prices. The companies like Bank of Kathmandu (BOK), Nepal Bangladesh Bank Ltd. (NBB), Nabil Bank Ltd. (NABIL), Nepal Investment Bank Ltd. (NIBL), Janata Bank Nepal Ltd. (JBNL), Nepal Credit And Com. Bank (NCCB) Prime Commercial Bank Limited (PCBL) made growth of approx. 10% than last traded price level.

Similarly, companies other than financial Institution like Nepal Life Insurance Co. Ltd. (NLIC), National LifeInsu. Co. Ltd. (NLICL), Nepal Doorsanchar Company Limited (NTC), Kaski Finance Limited (KAFIL), Rural Microfinance Development Centre Ltd. (RMDC), Chilime Hydro power Co. (CHCL), Arun Valley Hydropower Development Company Limited (AHPC), Shikhar Insurance Co. Ltd. (SICL), Surya Life Insurance Company Limited (SLICL) and Guras Life Insurance Co. Ltd. (GLICL) surged by more than 5 percent.

Among the 55 traded scrips today, none of the shares suffered loss. The least gainer in today’s session was Oriental Hotel Ltd. (OHL) with Rs 4 or 1.71 percent gain.

Meanwhile, there were trade of only six sectors amongst which Insurance made a spectacular rally of 78.36 or 5.13% points followed by Hydro with 65.89 or 4.72% points surge. Alongside them, Others and Banking also made their marks with a mammoth gain of 51.68 or 7.15% points and 38.42 or 6.69% points respectively.  

As for the remaining two sub-indices, Development and Finance, both made a meager incline of 2.93 or 0.91% point and 3.5 or 1.21% points respectively.

While, with respect to prior day’s market turnover, today’s amount was relatively low. Since, the market today didn’t get the opportunity to trade like that of normal days because of numerous circuits, the turnover amount only stood at Rs 102,630,142 which were carried out through 511 transactions totaling 202,698 units. The market capitalization at the end of the day was Rs 643,464.35 Millions             

In terms of highest share trade, Nepal Bangladesh Bank Ltd. (NBB), closed at Rs 440, topped with 48,718 units. In case of turnover, Nabil Bank Ltd. (NABIL), closed at Rs 2451, topped with 10,177 units worth Rs 24,899,589 via 27 transactions.

The  Broker with the highest standalone dealing of NABIL was Broker no 6 (Agrawal Securities Pvt. Limited) with 64.11%, tallying 13,026 units worth Rs 31,926,726 via 5 transactions which includes one matching transaction of 6,288 units worth Rs 15,411,888.