Nepse snaps month-long losing streak

KATHMANDU, SEP 14 -

Nepal Stock Exchange (Nepse) broke a month-long losing streak to end the week 35.09 points higher.

The market, which opened at 875.56 points on Sunday, jumped 44.5 points on Tuesday, before dropping 9.44 points on Wednesday. The benchmark index settled at 910.65 points on Thursday.

The market recovery has been attributed to improved investor confidence fuelled by regulators’ efforts and good financial results of listed companies, especially banks.

Narendra Raj Sijapati, president of Nepal Stockbrokers’ Association, said the market sentiment got a boost after Securities Board of Nepal (Sebon) and the Nepse asked investors not to panic. Sebon also assured it would talk to the Nepal Rastra Bank on any upcoming directive that may affect the market.

Of the nine trading groups, seven posted gains. Hydropower companies (up 98.71 points) topped the gainers’ side comprising insurance companies, commercial banks, hotels, others, development banks and finance companies. “As financial statements of most of the banks were encouraging, many investors’ were attracted towards the group,” Sijapati said, adding this pushed the overall market higher.

Manufacturing and trading were the only losers last week, down 24.23 points and 1.61 points, respectively. The sensitive index that measures the performance of ‘A’ class companies was up 7.84 points to 196.05 points.

The market turnover, however, increased by a nominal 8.37 percent to Rs 1.80 billion. The number of shares traded rose to 4,532,740 from 3,778,020.

Global IME Bank posted the highest individual transaction(Rs 198.47 million). Chilime Hydropower, Kist Bank (promoter shares), Citizens Bank International and Nepal Bank rounded out the top five. Kist Bank (promoters’ shares) topped in terms of the number of shares traded (862,000 units).

Meanwhile, Nepse registered 2 million units of initial public offerings of Ekata Development Bank and 100 units of Siddhartha Equity Oriented Scheme last week.

Source: The Kathmandu Post