Nepse Wrap up (Review period 13th - 17th January, 2013)
Sharesansar, 18th January:
Following the previous week closing in positive note, the Nepal Stock Exchange (Nepse) started this week in the affirmative path as the market index made steady growth of 0.91 and 0.40 points in the first two trading days of the week. However, the news of political parties’ failure yet again to resolve prevailing political stalemate, even after the President granted several extensions of deadlines, diverted the market movement in the bearish path.
As the President call to resolve the current political vacuum is heading towards nowhere; in addition to this, with the announcement of opposition parties to protest against the government from the street and CPN-Maoist warning to take arms, if the state power cannot assure the rights of the people, has seriously questioned the political stability of the country for the upcoming days.
The developing political scenario is gravely distracting and deteriorating the confidence of investors’ towards the secondary market of Nepal; which we can observe through the market movement of the last two trading days as the market plummeted by more than 9 points. In overall this week, the local bourse came down by 8.02 points to close at 520.91 levels as the gain of the first two trading days helped to narrow the losing gap to some extent.
Despite the decrease in Nepse due to political strife, the positive outlook for this week was the total turnover as it stood around Rs 390.77 million with the daily average of Rs 97.69 million which compared to the previous week soar by Rs 30.20 million or 45%. Likewise, the total numbers of shares also incremented by massive units as it stood around 1,212,211 which compared to previous week’s trade surged by 36%.
The increment in the turnover and share traded was mainly because of the huge trade of promoter shares of Machhachapuchhre Bank Limited Promotor Share (MBLPO), Citizens Bank International Limited Promoter Share (CZBILP) and NABIL Bank Limited Promotor Share (NABILP). While, the market capitalization at the end of the week tallied around Rs 501,832.65 million which is Rs 7,728.85 million lower compared to the previous week.
Among the sector indices, Insurance and Hotels were only the two sectors which were better off than the prior week. Insurance added 9.13 points in its tally whereas Hotels rose by 45.02 points. The jump in the price of Soaltee Hotel Ltd. (SHL) by Rs 27 in the last trading day of the week mainly pushed the Hotels sector to such greater height this week. Whereas, the increase in the price of Nepal Life Insurance Co. Ltd. (NLIC) and Life Insurance Co. Nepal (LICN) by Rs 31 and Rs 24 mainly boosted the Insurance sector .Similarly, Manufacturing sector added 7.21 points to its tally this week.
Whereas, Hydro and Banking were the only sectors that dropped by two digits; Hydro fall by 13.58 and Banking plunge by 11.24 points. In Hydro, all the shares traded under it dropped this week i.e. Arun Valley Hydropower Development Company Limited (AHPC), Butwal Power Co. Ltd. (BPCL) and Chilime Hydro power Co. (CHCL) declined by Rs 2, Rs 5 and Rs 32 respectively. Likewise in the Banking, Nepal Bank Limited (NBL), Standard Chartered Bank Ltd. (SCB), Nepal Investment Bank Ltd. (NIB), Bank of Kathmandu (BOK) and Nabil Bank Ltd. (NABIL) were the scrips which had the loss of more or equal to Rs 20 i.e. Rs 124, Rs 44, Rs 39, Rs 34 and Rs 20 respectively.
As for, Development, Finance and Others sectors all decreased by 1.67, 6.73 and 5.88 points respectively. Among other sub-indices, Sensitive index decreased by 1.86 or 1.34% to settle at 136.73 levels while Float index also dropped by 0.53 or 1.47% points to settle at 35.41 levels.
In overall week transaction, Nepal Investment Bank Ltd. Promoter Share (NIBPO), closed at Rs 410, was the Top Gainer with Rs 239 or 139.76%. On the other side, Infrastructure Development Bank Limited (IDBL), closed at Rs 74, was the Top Loser with Rs 24 or 24.49%. Among the ordinary share trading over par value, Ace Development Bank Limited (ACEDBL), closed at Rs 126, was the Top Gainer with Rs 19 or 17.76% whereas, Nerude Laghubita Bikas Bank Limited (NLBBL), closed at Rs 305, was the Top Loser with Rs 85 or 21.79%.
In terms of highest transaction, Agricultural Development Bank Ltd (ADBL), closed at Rs 254, topped with 386 transactions. In case of highest turnover and share traded, Sanima Bank Ltd. (SANIMA), closed at 258, topped with 74 transactions totaling 200,888 units worth Rs 54,193,713; in which Broker No 28 (Shree Krishna Securities Limited) was the active broker with 87.88% stand alone dealing of SANIMA, tallying 176,410 units worth Rs 47,630,700 via 2 matching transactions.
