Nepse loses ground due to adjustment

KATHMANDU, MAY 20:

The gain made by the Nepse index in the last trading day has been wiped out as Nepal Stock Exchange (Nepse) had to cancel out the discrepancies in trading held on Thursday.

The stock exchange cancelled out Thursday’s gain of five points that pushed the index to 499.99 points and set the base for Sunday’s trading at 494.5 points.

“Nepse had to cancel out the trading of Commerz and Trust Bank Nepal’s shares that were out of the price band in the first day, so the index was adjusted accordingly,” informed deputy spokesperson for Nepse Murahari Parajuli.

On Thursday, Commerz and Trust Bank Nepal’s shares had debuted in the stock exchange for trading — the first trading was held at Rs 162. According to the rules, in the first day trading should be held within two per cent price band. However, the rule was not followed and orders were placed way more and less than two per cent of Rs 162 — the debut price. “Nepse eliminated the orders that did not follow the price band so we had to subsequently adjust the index accordingly,” added Parajuli.

On the first day, Commerz and Trust Bank Nepal’s 52,684 shares worth Rs 7.78 million were traded in 227 transactions. Today too, the bank’s 54,254 shares worth Rs 7.89 million were traded in 283 transactions.

Due to the adjustment, the index could not reach Thursday’s high of 499.9 points despite a gain. It still finished 2.18 points lower than that of Thursday.

All of the subgroups except for banking and others gained today.

The banking subgroup finished 3.03 points lower today while others ended up five points lower.

Unilever’s gain of Rs 380 per unit made the manufacturing subgroup the highest gainer of the day as it went up by 15.57 points.

Today 289,930 unit shares of 83 companies worth Rs 77.26 million were traded in 1,196 transactions.

The market capitalisation of the stock exchange today stood at Rs 492.6 billion.

Source: THT