Fiscal year-end pushes share market up
KATHMANDU, July 10:
The share market gained 4.72 points this week thanks to the investors, who might be playing their annual near fiscal-year end game.
“The current rise in the market might be caused by the investors trying to increase their share prices to pay the banks,” said immediate past president of Nepal Brokers’ Association Nanda Kishor Mundada.
Around the fiscal year end, the investors push the stock prices up so that they can sell their shares at higher price to pay their outstanding interest and principles to reschedule their loans taken against shares. “It is an annual ritual in the secondary market,” he said, adding that during the quarter ends also cunning investors surge their stock prices by creating artificial demand to raise more money to pay the interest and avoid margin call from banks. The share market opened at 336.23 points sunday morning and closed at 333.23 points losing 3 points. But from the second day, the market started looking up as on Monday, the secondary market closed at 333.93 points.
Continuing the rising trend, Tuesday saw the market gaining to close at 340.82 points. The index sustained the rise next day also and closed at 344.46 points. However, it retreated on the last trading day of the week and closed at 340.95 points.
The Nepal Stock Exchange witnessed the trading of 512,726 unit shares of 113 companies worth Rs 374.17 million through 5,390 transactions in the five trading days. The week’s transaction saw 196.46 per cent increment compared to that of last week. The sensitive index measuring the performance of Class ‘A’ companies went up by 1.12 points to close at 84.06 points, whereas the float index that indicates the performance of the actual shares traded throughout the week gained 0.73 points to close at 28.76 points.
Among the total transactions, the trading of class ‘A’ companies consisted of 85.02 per cent amounting to Rs 318.8 million. Hydropower subgroup gained 43.53 points as the share prices of Arun Valley Hydropower, Chilime Hydropower and Butwal Power Company shot up. Similarly, commercial banks subgroup went up by 10.46 points.
Nepal Telecom’s share prices dropped by Rs 9 per unit pulling others subgroup down by 10.57 points.
Despite gains of Bottlers’ Nepal Balaju and Bottlers’ Nepal Tarai’s, Unilever’s loss of Rs 393 per unit share pulled manufacturing subgroup down by 1.43 points.
However, development banks, finance companies and insurance companies lost by 6.3 points, 2.38 points and 16 points, respectively.
Laxmi Bank topped the charts in terms of transaction amount and number of shares traded with the trading of 837,000 unit shares worth Rs 206.18 million in a week. In terms of numbers of transaction Tinau Bikas Bank was front runner with 403 transactions. Laxmi Bank (Rs 206.18 million), Bank of Kathmandu (Rs 32.75 million), Standard Chartered Bank (Rs 13.38 million), Prime Commercial Bank (Rs 11.27 million) and Nepal Investment Bank (Rs 11.02 million) became the top five performers of the week.
Source: THT
The share market gained 4.72 points this week thanks to the investors, who might be playing their annual near fiscal-year end game.
“The current rise in the market might be caused by the investors trying to increase their share prices to pay the banks,” said immediate past president of Nepal Brokers’ Association Nanda Kishor Mundada.
Around the fiscal year end, the investors push the stock prices up so that they can sell their shares at higher price to pay their outstanding interest and principles to reschedule their loans taken against shares. “It is an annual ritual in the secondary market,” he said, adding that during the quarter ends also cunning investors surge their stock prices by creating artificial demand to raise more money to pay the interest and avoid margin call from banks. The share market opened at 336.23 points sunday morning and closed at 333.23 points losing 3 points. But from the second day, the market started looking up as on Monday, the secondary market closed at 333.93 points.
Continuing the rising trend, Tuesday saw the market gaining to close at 340.82 points. The index sustained the rise next day also and closed at 344.46 points. However, it retreated on the last trading day of the week and closed at 340.95 points.
The Nepal Stock Exchange witnessed the trading of 512,726 unit shares of 113 companies worth Rs 374.17 million through 5,390 transactions in the five trading days. The week’s transaction saw 196.46 per cent increment compared to that of last week. The sensitive index measuring the performance of Class ‘A’ companies went up by 1.12 points to close at 84.06 points, whereas the float index that indicates the performance of the actual shares traded throughout the week gained 0.73 points to close at 28.76 points.
Among the total transactions, the trading of class ‘A’ companies consisted of 85.02 per cent amounting to Rs 318.8 million. Hydropower subgroup gained 43.53 points as the share prices of Arun Valley Hydropower, Chilime Hydropower and Butwal Power Company shot up. Similarly, commercial banks subgroup went up by 10.46 points.
Nepal Telecom’s share prices dropped by Rs 9 per unit pulling others subgroup down by 10.57 points.
Despite gains of Bottlers’ Nepal Balaju and Bottlers’ Nepal Tarai’s, Unilever’s loss of Rs 393 per unit share pulled manufacturing subgroup down by 1.43 points.
However, development banks, finance companies and insurance companies lost by 6.3 points, 2.38 points and 16 points, respectively.
Laxmi Bank topped the charts in terms of transaction amount and number of shares traded with the trading of 837,000 unit shares worth Rs 206.18 million in a week. In terms of numbers of transaction Tinau Bikas Bank was front runner with 403 transactions. Laxmi Bank (Rs 206.18 million), Bank of Kathmandu (Rs 32.75 million), Standard Chartered Bank (Rs 13.38 million), Prime Commercial Bank (Rs 11.27 million) and Nepal Investment Bank (Rs 11.02 million) became the top five performers of the week.
Source: THT
