NEPSE CONTINUES TO RISE; BUYING SPREE ON BANKING SCRIPS

Sharesansar, 15th June:

Buoyed by the buying spree on banking scrips, the market today propelled by mammoth 22.95 points, which is the highest single day gain in a hiatus of six months, to close at 927.56 level.

Last time the market observed such movement was back in December month, during which the benchmark index made a rally of 37.95 points and 35.62 points on back to back days.

Today, the sudden rise in the demand of Standard Chartered Bank (SCB), closed at Rs 2376, mainly formulated the drive in banking scrips.

With the circuit level increase of Rs 216 or 10 percent, which is the highest among traded scrip,  in SCB within first hour, the demand in NABIL, NABILP, SBI, NBB, NICA, ADBL, EBL, CCBL ,NIBL etc soon after started to pick up which attributed to nearly 3 percent market index incline in first hour.

“The expectation of pro-market budget is one of the reasons for such drive,” says one of the investors.

The anticipation of provision for new banking and financial institutions from upcoming budget has spurred an expectation of capital increment of existing banks.

However, the officials from concern organizations have made it clear that the provision of new banks is to give emphasize on infrastructure and hydropower development of country, and there is no correlation with existing bank.

In spite of such clarification the expectation of capital increment is high in the market.

Experts and Investors believe that even if the provision of capital increment is not on the pipeline, the banks are ought to increase their capital so as to expand their business in line with NRB provision of capital adequacy ratio.

Fueled by such sentiment the investors are now gradually shifting toward banking scrips which has attributed to gain in banking sector lately.

Banking sector today added 34.54 points. Similarly, Development and Finance gained 5.88 points and 1.42 points respectively.

As for Insurance, it added 68.24 points, Hotels inclined by 1.93 points, Hydro climbed 12.05 points while Others remained intact, and Trading and Manufacturing dropped by 3.13 points and  15.57 points respectively.

All in all, the scrips of 131 companies were traded today, out of which 91 scrips gained, 14 remained intact and 26 scrips lost. Shikhar Insurance Co. Ltd.  (SICL), closed at Rs 807, was the worst performer among traded shares with Rs 46 or 5.39 percent loss.

In terms of turnover, Nepal Bangladesh Bank Ltd. (NBB), closed at Rs 725, topped with the category with transaction worth Rs 32,967,984.Altogether, 45,786 share units were traded through 126 transactions.

The broker with the highest standalone dealing of the NBB was Broker No 33 (Dachinkali Investment Securities Pvt.Ltd ) with 10.64 percent totaling 9,755 shares trade amounting Rs 7,020,400 via 16 transactions, which include three matching transactions tallying 2,200 share units worth Rs 1,577,400.

The market turnover today stood at Rs 553,659,573 , with total number of shares traded at 1,235,486 units which were traded through 3,848 transactions. The market capitalization at the end of the day stood at Rs 946,237.15 Millions.