Investors upbeat on future prospects
KATHMANDU, NOV 25:
The ongoing political turmoil has not had a negative effect on the share price rally as positive outlook was stronger this week –– November 18 to 22.
The encouraging first quarter results of commercial banks, insurance companies and hydropower companies has got investors excited about the
future prospects of the stocks during the ongoing bull-run. However, the dismal political scenario has affected investor confidence as the benchmark index dropped below 500 points during the last two trading days.
The benchmark index earned 16.23 points, this week. The market opened at 480.85 points on Sunday morning and reached 492.80 points by the closing. The next day, the index surged past 501.52 points on the possibility of a full fledged budget being announced on that day. However, the government announced another round of partial budget which pulled the market down to 497.08 points in the next two days.
In the four trading days, the market witnessed trading of 990,000 unit shares worth Rs 569.9 million of 115 companies that were traded in 6722 transactions.
Stock trading of class ‘A’ companies accounted for 59.84 per cent of total trading, amounting to Rs 316.1 million. The sensitive index that measures the performance of blue chip stocks gained 3.84 points. Indicator of performance of actual shares traded –– float index –– went up by 1.17 points reaching 35.26 points.
This week all subgroups registered gains. The hotels subgroup became the biggest earning subgroup of the week as Soaltee Hotel earned Rs 35 per unit share. Likewise, the insurance subgroup also gained 26.22 points, following a satisfying first quarter. Likewise, a 33 per cent increment in the net profit in the first quarter caused the commercial banks subgroup to increase by 24.58 points.
Hydropower companies earned only 6.02 points due to the declining share prices in the last two trading days of the week. Others gained 3.52 points, while finance companies and development banks earned 0.15 points and 1.08 points, respectively.
This week, Nepal Bangladesh Bank was the forerunner in terms of
trading volume, number of shares traded and the number of transactions with 239,695 unit shares worth Rs 63.6 million traded in 490 transactions.
The top five performers of the week were Nepal Bangladesh Bank (Rs 63.63 million), Nepal Investment Bank (Rs 62.41), Bank of Kathmandu (Rs 39.39 million), Chilime Hydropower (Rs 35.36 million) and Butwal Power Company (Rs 25.59 million).
Source: THT
