Investors regain confidence in stock market
KATHMANDU, JUNE 02:
Investor confidence in stocks seems to have been restored as the market index stayed above 500 points this week — March 26 to 30.
The Nepse index gained 3.18 points as the stock market seems to be gradually recovering. The encouraging profit of the listed companies in the third quarter has finally been able to grab the attention of investors.
On Sunday afternoon, the market that had opened at 497.04 points, closed at 499.19 points. The next day, the index rose to 503.81 points. However, from Tuesday onwards, it could not sustain the momentum and by the end of the week it rested at 500.22 points.
Transactions jumped by 17.07 per cent, mostly due to Nepal Investment Bank purchasing National Life Insurance Company’s shares. Nepse’s trading floor observed trading of 1.5 million unit shares worth Rs 417.3 million of 112 companies in 4886 transactions. Turnover in market had stood at Rs 356.4 million, last week.
Share trading of blue chip stocks belonging to class ‘A’ companies comprised of 66.25 per cent of total transactions, amounting to Rs 276.4 million, this week. The sensitive index gained 0.79 points. Likewise, the float index that shows performance of actual shares traded also increased by 0.12 points to 35.6 points.
This week, all but manufacturing subgroup were able to record gains. The insurance subgroup became the biggest earner of the week by gaining 34.53 points as National Life’s shares were sold for Rs 21 more.
Nepal Telecom gained Rs two per unit pushing others subgroup up by 2.32 points. The hotels subgroup went up by 3.21 points as Oriental Hotels gained Rs seven per unit.
The hydropower subgroup gained 7.73 points as Chilime Hydropower and Butwal Power Company gained Rs seven each, and Arun Valley Hydropower gained Rs five. Commercial banks, finance companies and development banks also gained 2.35 points, 3.03 points and 2.33 points.
The manufacturing subgroup lost 15.98 points as Unilever’s share price declined by Rs 308 per unit.
This week, National Life Insurance topped the charts in terms of transaction volume with trading worth Rs 133 million. Nabil Balanced Fund I topped in terms of number of shares traded with trading of 347,347 units. Commerz and Trust Bank Nepal was forerunner in number of transactions with 1086 transactions.
This week, top five companies in terms of turnover were National Life Insurance (Rs 133.01 million), Everest Bank (Rs 26.54 million), Chilime Hydropowe (Rs 25.02 million), NCC Bank (Rs 26.94 million) and Standard Chartered Bank (Rs 17.71 million).
Source: THT
