Nepse Wrap up (Review period 10th Nov to 14th Nov, 2013)

ShareSansar, 15th  November

Heated up by the nearing election, the secondary market of Nepal this week came to set a new four years’ high and also breached the psychological barrier of 600 levels. Making a bull run throughout the week, the NEPSE index came to advance by remarkable 20.97 points than that of last week’s closing level, to close at 600.42 levels.

The market came to rise this week following the government declaration of holidays prior and post election. This step of government was well accepted amongst investors as an effort to carry out free, fair and timely election at all cost.

With the government carrying out several measures for timely and undisturbed election, the Investors are now all optimistic towards the happening of election , in addition the lower interest rate in the market along with the publishing of healthy first quarter financial reports of the listed companies have further helped to set positive sentiment amongst investors in the market.

As the market will remain close for most of the prior election days, the investors took this week’s trading as opportunity to grab the scrips at lower rates, in anticipation of further surge in the price post election.

Attributed by such sentiment, the overall market turnover for the week stood at a mammoth total of Rs 1.50 billion, with a daily average of Rs 300 million. Altogether, 6,594,780 units of shares were trade through 12,826 transactions. Along with the incredible transactions and surge, the market capitalization also came to cross the threshold of Rs 600 billion as it stand at 609,252.87 million at the end of the week.

Contrast to prior day’s hefty turnover which used to heavily weight by promoter shares amount, this week’s turnover amount was outweighed by the ordinary shares amount as six ordinary scrips had turnover over Rs 50 million.

The scrip with the highest turnover was Nepal Bank Limited (NBL), closed at 214, with 574,475 units worth Rs 116,854,960 which was carried out by 543 transactions.

The  broker with the highest transaction of NBL was Broker no 56 (Sri Hari Securities Pvt. Ltd.) was the most active Broker 14.63% standalone dealing of NBL tallying 165,035 units worth Rs 34,189,300 via 58 transactions which  includes one matching transactions totaling 4620 units worth Rs 933,240.

While, Nabil Bank Ltd. (NABIL), Nepal Bangladesh Bank Ltd. (NBB), Commerz and Trust Bank Nepal Ltd. (CTBNL), Janata Bank Nepal Ltd. (JBNL) and Mega Bank Limited (MEGA) were the remaining scrips with turnover over Rs 50 million.

All in all, the 123 scrips were traded this week, out of which 93 scrips gained, 12 remained intact and 18 scrips lost.

The best performer this week among the traded scrips was Unique Finance Limited (UFIL), closed at Rs 110, with gain of Rs 29 or 35.80 percent. Whereas, United Insurance Co.(Nepal)Ltd.  (UIC) was the worst performer among all with a decline of Rs 27 or 19.71 percent.

As for the sub-indices movement, Insurance made a huge leap of triple digit i.e. 118.30 points. Following Insurance, Hydro came to incline by 48.82 points alongside Banking and Development double digit growth of 20.18 and 13.61 points respectively.

While, Hotels, Finance and Other were not able to sustain double digit gain as all these sectors came to settle by only 2.64, 8.80 and 5.87 points higher than prior week’s closing. Meanwhile, Manufacturing remained intact at 934.25 levels.

On the other hand, Sensitive index which measures the movement of blue chip companies, advanced by 4.22 points to settle at 141.5 levels.  Likewise, Float index, which measures the movement of ordinary shares only, also propelled by 1.06 points to settle at 41.5 levels.