Nepse Wrap up (Review period 12th to 14th August, 2014)

ShareSansar, 15th August:

This week Nepse index suffered loss of 6.20 points to settle at 1034.39 level.

In addition to profit-taking from the investors, after nearly 13 percent rally in month of July only, the chaotic situation of clearing and settlement system in Nepse came to dampen the investors’ confidence this week.

One of the investors says, “The current clearing and settlement system of CDS is mess. Before, we use to get settled by 10 working days, however, now we have to wait beyond that period because of which we are facing difficulties in liquidity position and portfolio management.”

He further adds, “If system is not capable of executing its functions properly then why would anyone invest in such scenario, where timely payment is not sure.”

Attributed by such low morale of investors towards system, the market witnessed low participation on Tuesday which dragged the market index by 18.73 points.

However, on the following two days, buying spree gradually improved as investors took opportunity to grab the scrips at ongoing correction level.

On latter two days, the Nepse index gained 4.35 points and 8.18 points respectively.

Coming to sub-indices movement, Others and Manufacturing were the only sub-groups to post gain. Others increased by 2.35 points and Manufacturing propelled by 30.51 points.

While, Hydro and Insurance led the down fallers with losses of 58.74 points and 37.66 points respectively. Similarly, Development and Hotels also suffered double digit plunge of 16 points and 16.85 points respectively.

As for Banking, it dropped by 8.35 points and Finance declined by 4.13 points.

In case of, Sensitive index, which measures the movement of blue chip companies, it decreased by 1.74 points to settle at 221.29 level.  Likewise, Float index, which measures the movement of ordinary shares only, declined 0.60 points to settle at 73.09 level.

All in all, 166 scrips were traded, out of which 46 scrips gained, 17 scrips remained intact and 100 scrips suffered loss.

The company with highest turnover in general trading this week was Chilime Hydro power Co. (CHCL), closed at Rs 2,530. Altogether, 43,596 share units worth Rs 110,086,104 were traded through 303 transactions.

The Broker with the highest transaction of CHCL was Broker No 33 (Dachinkali Investment Securities Pvt.Ltd) with 10.83 percent standalone dealing, totaling 9,438 units worth Rs 23,858,227 via 41 transactions, which include three matching transactions tallying 760 units worth Rs 1,943,510.

The best performer this week among the ordinary traded scrips was Siddhartha Finance Limited (SFL), closed at Rs 184, with a gain of Rs 40 or 27.78 percent. Whereas, Araniko Development Bank Limited (ARDBL), closed at Rs 190, was the worst performer with a decline of Rs 30 or 13.64 percent.

The total turnover of the market for this week stood at Rs 1,151,798,800 totaling 2,186,924 share units which were traded through 8,470 transactions. The market capitalization at the end of the week tallied at 1,056,126.89 Millions.