Nepse closes week 10.01 points down

KATHMANDU, MAY 27 -

The Nepal Stock Exchange last week dropped 10.01 points to settle at 398.60 points on Thursday.

The market, which opened at 408.61 points on Sunday, rose to 414.15 on Monday, but nosedived on Tuesday and Wednesday before posting a double-digit growth on Thursday.  

The capital market swung with political development and the investors’ psyche, according to the stockbrokers. The entire sub indices in the exchange registered loss, except hotels, up 10.30 points, and non-mover trading.

The banking sub-index fell 12.97 points. Hydropower companies, others, insurance companies, manufacturing industries, development banks and finance companies dropped 24.86, 10.57, 2.29, 6.64, 3.86 and 0.08 points, respectively.

Experts say the market is currently reacting to political events rather than market fundamentals. “The market will behave similarly in coming days,” said Anjan Raj Poudyal, president of the Stock Brokers’ Association of Nepal. “Under such circumstances, it is difficult to predict the market. We are eying the constitution promulgation deadline. If the constitution is drafted within the deadline, the market might further grow.” However, some positives can be drawn from the market, according to experts. The exchange has been witnessing good turnover these days irrespective of the rise or fall in the benchmark index. “This is indeed a good sign,” said Poudyal.

“It reflects that investors have confidence in the market and they will keep on investing. This will bring stability.”

The market last week witnessed transactions worth Rs 372.39 million—slightly higher than previous week’s Rs 369.19 million. Bank of Kathmandu topped the charts in terms of total turnover, number of shares traded and transactions. Bank of Kathmandu realised Rs 78.45 million from the trading of 119,514 shares through 657 transactions.

Source: The Kathmandu Post