LATER GAIN LIMITS NEPSE LOSS; BROKER SUSPENSION IMPACTS MARKET VOLUME

Sharesansar, 28th July:

The Nepal Stock Exchange extended its loss for third straight day on profit-booking and suspension of brokers. The Nepse index posted loss of 1.11 points, to settle at 1072.82 level.

In the initial phase of today’s session, the secondary market of Nepal continued to witness profit-taking in recent gainers of banking, insurance and hydro sector which dragged the market index below 1070 level. However, the improvement of demand in banking scrips along with insurance and hydro in latter hour helped narrow the loss.

In spite of latter demand, the absence of brokers in market attributed to low transaction which came to impact the overall market volume and transition.

Today, the broker numbers 3, 7, 8, 14, 16, 19, 21, 25, 26, 29, 32, 36, 37, 38, 40, 42, 46, 48, 51, 52, 53, 55, 58 and 59  were suspended for non-settlement of cash by Nepse. Similarly, 16 brokers too were suspended for same reason yesterday.

The outcome of this event led to decrease in market volume as it stood at only Rs 341.13 million, compared to Rs 562 million of yesterday.

In addition, the technical error in Nepse terminal also caused disturbance in today’s trading, which resulted in 25 minutes trading extension after closing time of 3pm.

All in all, the scrips of only 125 companies were traded, out of which 51 scrips gained, 14 remained intact and 60 scrips lost.

The best performer for the day were, Sindhu Bikas Bank Ltd. (SINDU), closed at Rs 217, with Rs 19 or 9.60 percent gain. Whereas, Hama Merchant & Finance Ltd. (HAMA), closed at Rs 161, was the worst performer today with Rs 17 or 9.55 percent loss.

Nabil Balance Fund 1, on the other hand, made the highest turnover amongst the traded shares today. Altogether, 1,843,444 units share of NBF1 were traded through 21 transactions worth Rs 32,740,487.

The broker with the highest standalone dealing of the NBF1 was Broker No 49 (Online Securities Pvt.Ltd) with 97.34 percent totaling 1,795,552 share units amounting Rs 31,872,192 via five matching transactions.

As for the movement of sub-groups, Banking and Manufacturing suffered loss of 2.8 points and 15.72 points while, Hotels and Insurance made double digit incline of 13.27 points and 12.51 points respectively.

Likewise, Development, Hydro and Finance also settled on green with gain of 0.8 point, 4.06 point and 0.02 point respectively.