Nepse index down as investors liquidate shares
KATHMANDU, DEC 02:
As the season for announcing the dividends has almost come to an end, stock investors have started liquidating shares to make profits from the inflated share prices which has resulted in the Nepse index reverting back this week –– November 25 to 29.
The benchmark index declined by 8.08 points during the week as investors wanted to capitalise on the already skyrocketing price of shares and the index hovered near 500 points. Likewise, as most listed companies have already declared dividends, investors do not have much interest in sticking to their stocks when prices are rising.
The market opened at 497.08 points on Sunday morning and reached 497.36 points by the closing. In the next four days, the index continued to slump gradually reaching 489 points by the end of the trading week.
In five trading days, the market witnessed trading of 1.4 million unit shares worth Rs 496 million belonging to 117 companies in 6805 transactions. This is a 6.58 per cent decline in trading volume in comparison to the trading conducted in the four trading days last week.
Stock trading of class ‘A’ companies accounted for 55.86 per cent of total trading, amounting to Rs 277.1 million. The sensitive index that measures the performance of blue chip stocks went down by 1.68 points. The indicator of the performance of actual shares traded –– float index –– slumped by 0.46 points reaching 34.8 points.
This week all the subgroups ended up in the red except for manufacturing that gained 7.63 points due to the appreciation in Unilever’s stock price.
The hotels subgroup became the biggest loser of the week as Soaltee Hotel lost Rs 23 per unit share. The insurance subgroup was also down by 31.03 points as share prices of major insurance companies plummeted.
The hydropower subgroup was the third largest loser that lost 26.05 points.
Commercial banks lost 8.36 points, while development banks and finance companies went down by 2.43 points and 0.51 points, respectively.
The others subgroup also went down by 8.22 points as the share price of Nepal Telecom slumped by Rs 10 per unit share ths week.
This week, Nepal Investment Bank was the forerunner in terms of trading volume and number of transactions with shares traded worth Rs 76.9 million in 514 transactions as the bank announced 30 per cent dividend. In terms of number of shares traded, Nepal Bangladesh Bank was the forerunner with trading of 216,238 unit shares.
The top five performers at the Nepal Stock Exchange this week were Nepal Investment Bank (Rs 79.96 million), Nepal Bangladesh Bank (Rs 55.66 million), Bank of Kathmandu (Rs 33.45 million), Global IME Bank (RS 27.09 million) and Everest Bank (Rs 22.50 million).
Source: THT
