Investors regain faith in share market

KATHMANDU, SEP 16: 

The share market saw shares of a record 130 companies being traded in the week –– September 9 to 12 –– as investors seem to have regained faith in the market.

The benchmark index gained 10.46 points as the week closed at 418.9 points –– a four-month high. Declaration of dividends and expectations of hefty returns have propelled the rally in the stock market. 

The market that opened at 408.90 points on Sunday afternoon reached 407.90 points by end of day. The index slid to 407.35 points on Monday. From the next day onwards, it started to surge reaching 418.90 points by the closing on Thursday.

With the number of companies listed at Nepse increasing, the number of scrips traded has started to get close to 100 everyday. Increased number of scripts traded and the gain in the Nepse index, however, did not contribute to increasing the transaction volume. 

The stock exchange witnessed trading worth Rs 340 million of more than 1.17 million unit shares belonging to 127 companies in 7798 transactions. The transaction volume has increased by 8.24 per cent in comparison to last week. 

Trading of blue chip stocks –– shares of class ‘A’ companies –– amounted to 60.25 per cent of the total trading amounting to Rs 222.8 million. The sensitive index that measures the performance of blue chip stocks gained 2.65 points. Likewise, the indicator of the performance of actual shares traded –– float index –– gained 0.75 points reaching 30.71 points. 

Insurance companies continued to charge ahead for the third week in a row, headed by Nepal Life Insurance Company gaining 60.46 points in week. However, suspension of Everest Insurance from stock exchange for circulating rumours about its willful shutdown might affect overall performance of the group. 

Hotels gained 25.58 points while others gained 23.5 points. Commercial banks also gained 8.72 points as their stocks have become attractive once more. Finance companies and development banks also gained 4.2 points and 0.06 points, respectively. Hydropower and manufacturing subgroup lost 1.85 points and 2.51 points, 

respectively. 

This week, the shares of Chilime Hydropower Company witnessed the highest transaction volume with trading of shares worth Rs 49.8 million. Nepal Bangladesh Bank topped in terms of highest number of shares traded with 134,200 units being traded. Hama Merchant and Finance was forerunner in terms of highest number of transactions with 1057 transactions. 

Source: THT