NEPSE down 7 days in a row; NRB relaxation on margin lending crucial
Sun, Feb 12, 2017 5:33 PM on Latest, Featured, NEPSE News, Stock Market,
Nepal Stock Exchange Limited (NEPSE) Index has continued to fall down today, making it a continuous downfall for the last 7 trading days. Today, it has shrunk by a massive 43.73 points (3.37%) to close at 1,252.50 points. The market opened at 1296.23 today, and slipped to 1262.60 within the first trading hour. It rebounded to 1280.63 in the second trading hour, but panicked sellers dragged it further down continuously till the end. The turnover of the day stood at Rs 49.41 crore (Rs 8.19 crore less than the last trading day).
Since the market was at its all-time high of 1881 on July 27, 2016, investors have lost over Rs 6.90 kharba from the market.
Market price of two insurance companies below the proposed FPO price
Today, the insurance sub-index lost the most by 346.14 points (6.43%). This loss has mostly affected the upcoming further public offerings of two non-life insurance companies: Premier Insurance and Shikhar Insurance. The market price of Premier Insurance Company (PIC) has come down to Rs 960, lower than the proposed price of its FPO at Rs 1,004 per unit. Similarly, price of Shikhar Insurance (SICL) has come down to Rs 1,530, lower than the proposed FPO price of Rs 1,620 per unit.
Today, 2.01 lakh units of NEF and 98,581 units of PRVUPO were traded the most today. Apart from Prabhu Bank (PRVU), Nepal Bangladesh Bank (NBB) and Deprosc Laghubitta (DDBL) had the highest turnover. Altogether, 13.09 lakh unit shares were traded through 6,158 transactions today. In this bearish trend, Mero Microfinance (MERO), Guheyshwori Merchant and finance (GMFIL) and Soaltee Hotel (SHL) gained the most while Prime Life Insurance (PLIC), Prabhu Insurance (PRIN) and NB Insurance (NBIL) lost the most. Insurance sector lost the most today with 7 out of the top 10 losers being insurance companies.
Today, the sensitive index dropped by 9.69 points, whereas float index shrunk by 3.45 points. Inspite of the huge fall, Hotel sub-index ended up in green by gaining 15.4 points. Insurance sub-index shrunk by 346.14 points (6.43%) the most today.
Market in critical phase
According to many investors and analysts, stock market has come down to a critical phase. Some investors attribute this to the excessive pressure of margin call from banks while the ongoing liquidity crunch is also a major factor. While banks might feel somewhat relaxed after Rs 67.54 arba comes back after the IPO refunds in the next 20 days, serious reforms from government is needed to bring a significant positive effect on the market.
Today, 2.01 lakh units of NEF and 98,581 units of PRVUPO were traded the most today. Apart from Prabhu Bank (PRVU), Nepal Bangladesh Bank (NBB) and Deprosc Laghubitta (DDBL) had the highest turnover. Altogether, 13.09 lakh unit shares were traded through 6,158 transactions today. In this bearish trend, Mero Microfinance (MERO), Guheyshwori Merchant and finance (GMFIL) and Soaltee Hotel (SHL) gained the most while Prime Life Insurance (PLIC), Prabhu Insurance (PRIN) and NB Insurance (NBIL) lost the most. Insurance sector lost the most today with 7 out of the top 10 losers being insurance companies.
Today, the sensitive index dropped by 9.69 points, whereas float index shrunk by 3.45 points. Inspite of the huge fall, Hotel sub-index ended up in green by gaining 15.4 points. Insurance sub-index shrunk by 346.14 points (6.43%) the most today.
Market in critical phase
According to many investors and analysts, stock market has come down to a critical phase. Some investors attribute this to the excessive pressure of margin call from banks while the ongoing liquidity crunch is also a major factor. While banks might feel somewhat relaxed after Rs 67.54 arba comes back after the IPO refunds in the next 20 days, serious reforms from government is needed to bring a significant positive effect on the market.
