NEPSE WITNESS FURTHER CORRECTION

Sharesansar, 27th July:

The stock market of Nepal witnessed further correction today as profit taking in banking, insurance and hydro persisted.

In addition, the suspension of broker number 3, 7, 8, 14, 18, 19, 25, 26, 29, 37, 38, 42, 46, 48, 53 and 55 for non-settlement of cash also attributed in market downfall.

The benchmark index posted 5.16 points or 0.48 per cent down to 1073.93 level with a volume of only Rs 562 million, which is 25 percent lower than prior trading day’s volume.

Following last Thursday’s correction, more investors and traders took a cautious approach today by profit-booking in recent gainers like Summit Micro Finance Development Bank Ltd. (SMFDB), Chilime Hydro power Co. (CHCL), Premier Insurance co. Ltd. (PIC), Nabil Bank Ltd. (NABIL) and so on.

Further the lack of buyers because of absence of large numbers of brokers, dragged all the mentioned sub-indices down to red terrain today.  Banking suffered loss of 4.76 points, Hydro dropped by 42.84 points, Insurance decreased by 11.19 points and Others declined by 8.22 points.

Similarly, Hotels also suffered loss of 64.03 points, while, Development and Finance were the only –subgroups with gain of 8.88 points and 0.09 points respectively.

All in all, the scrips of 144 companies were traded, out of which 66 scrips gained, eight remained intact and 70 scrips lost.

The best performer for the day were, Sindhu Bikas Bank Ltd. (SINDU), closed at Rs 198, and Synergy Finance Ltd  (SYFL), closed at Rs 143, with 10 percent gain by each i.e. Rs 18 and Rs 13 respectively . Whereas, Summit Micro Finance Development Bank Ltd. (SMFDB), closed at Rs 1140, was the worst performer today with Rs 75 or 6.17 percent loss.

Nepal Bank Limited, on the other hand, made the highest turnover amongst the traded shares today. Altogether, 179,635 units share of NBL were traded through 207 transactions worth Rs 97,824,694.

The broker with the highest standalone dealing of the NBL was Broker No 49 (Online Securities Pvt.Ltd) with 10.77 percent totaling 38,377 share units amounting Rs 21,080,633 via 66 transactions, which include five matching transactions tallying 4,000 units worth Rs 2,175,000.