Nepse ends week 18.75 points lower

KATHMANDU, MAY 06 -

In a classic example of political events influencing the stock market, the Nepal Stock Exchange (Nepse), which plunged for the last week’s first three trading days, rebounded with a double-digit growth on Thursday after parties agreed on unity government.

However, on a weekly basis, the benchmark lost 18.75 points to settle at 404.25 points.

The banking sub-index, which holds the heaviest trade volume on the exchange, dropped 15.92 points to close at 396.17. The others sector was the biggest loser, shedding 71.65 point, followed by hydropower sector, down 21.24 points. Rest of the groups saw fringe growth, except for hotels and manufacturing that remained constant.

Stockbrokers say there have been some good changes seen in the market. “Currently, there is high demand for shares and the supply side is equally good,” said Anjan Raj Poudyal, president of the Stock Brokers’ Association of Nepal. “We can see some new investors in the market too.”

Analysts, however, say the impact of the positive political development on the market has always short lived. “There have not been any significant changes besides political development. Therefore, the market is seeing ups and downs,” said Rabindra Bhattarai, stock analyst. “For the market to sustain this growth, factors like a cut in bank rates

and good performance of listed companies, among others, will play a crucial role.”

The market’s turnover decreased to Rs 329.49 million from Rs 487.14 million in the previous week.

The number of shares traded also fell to 931,019 shares from 1.42 million.

Bank of Kathmandu topped the charts in terms of turnover and the number of transactions, realising Rs 57.70 million from 515 transactions. National Hydro took the pole position in terms of the number of shares traded—143,263 units.

Source: Kantipur