Nepse index inches towards 500 points
KATHMANDU, MAY 17:
The stock index headed towards 500 points as investors regained confidence in the market due to the assuring third quarter financials.
The stock index surged to 499.99 points, today, as investor fear regarding a large quantity of promoter shares flooding the market fizzled out. The index, that had plunged below 500 points on May 2, had reached 481 points on May 6.
Investors were dumping shares for fear of share prices going down due to large scale offloading of promoter shares in the secondary market. In the beginning of April, Securities Board of Nepal announced its decision to allow conversion of promoter shares belonging to financial institutions to ordinary shares through secondary market trading.
On November 10, the index had crossed 500 points after two and a half years and after December 16, it remained above 500 points as the bull run continued in the market. The slowly retreating index was further pushed down by the panic created due to fears of promoter shares being offloaded in the stock market in large quantities.
However, the fear seemed to have been baseless as since the beginning of April, Nepse’s trading floor observed trading of about only 584,000 units of promoter shares amounting to Rs 96.5 million. The index has been registering a gain since the last three trading days.
Moreover, third quarter financials of the listed companies show substantial growth in profit which also helped in aiding the current ascent.
The share market had been bullish since mid-April 2012 after going through four years of a bearish run. The index had even reached 555 points in February 17 — the highest in the last 40 months.
The insurance subgroup gained 23.29 points as share prices of Nepal Life Insurance, National Life Insurance and Life Insurance Corporation Nepal went up by Rs 22, Rs 50 and Rs 51, respectively. As Nepal Telecom earned Rs 10 per unit share, others subgroup gained 11.75 points. Unilever lost Rs 65 that pulled the manufacturing subgroup down by 3.37 points.
Today, 349,514 unit shares belonging to 76 companies worth Rs 67.29 million were traded in 1016 transactions. The market capitalisation of the stock exchange today stood at Rs 491.4 billion.
CTBNL debuts
Commerz and Trust Bank Nepal (CTBNL)’s shares debuted today at Nepse at Rs 155. The price fluctuated between Rs 162 and Rs 132. However, at the end of trading day, it closed at Rs 149 per unit. Its 52,684 shares worth Rs 7.78 million were traded in 227 transactions at stock exchange. The initial public offering of the bank held in February was oversubscribed by 12 times the size of the offering worth Rs 600 million.
Source: THT
