Nepse Wrap up (Review period 13th July to 17th July, 2014)

ShareSansar, 18th July:

The secondary market of Nepal continued to remain upbeat after the timely announcement of budget on Sunday.

Though the budget didn’t address about the transaction tax system and other expected provision by investors for capital market, the government strong indication towards capital market development through NRN investment and development of CDS  was well received in the market.

In addition, with the end of the FY 2070/71, investors and traders are now eyeing for the companies with good profit and dividend records in expectation of good returns in near future.

Drive by such sentiment buying spree in the banking and financial institutions and hydro shares was observed this week, leading to  22.42 points in only secondary market of Nepal. Following the gain the Nepse came to set new six year height of 1045.89 level.

Though the profit-taking in  recent outperformers earlier in this week snap the Nepse 14 consecutive trading days rally, the continuous buying spree in blue chip companies propelled the market to new height on latter days.

Sensitive index, which measures the movement of blue chip companies, increased by five points to settle at 224.53 level this week.

“The investors and traders are eyeing for blue chip companies in expectation of good returns from their current fiscal year’s earning,” says one of the brokers, “as their track record of dividends are good compared to other listed companies, the demand in these kinds of companies are increasing day by day.”

As most of the blue chip companies are banking and financial institutions, the demand of these companies’ shares were relatively high than other listed shares.

Of the total market turnover of Rs 3.19 billion this week, banking sector alone covered half of the turnover followed by hydro with 20 percent, and Development and Insurance with 12 percent each.

Banking sub-index alone this week increased by 25.06 points followed by Development with 25.58 points gain and Finance with 1.57 points gains.

Another sector that observed hefty growth was Hydro as it surged by 65.01 points.

“The budget has addressed positively towards the hydro sector by giving tax exemption and incentives of Rs 5 million for each MW produced by the hydel companies, so investors are expecting higher earnings from these companies in upcoming days,” says one of the investors.

Similarly, remaining sub-indices' scrips also witnessed sound demand in latter days which helped all to land on green terrain.  By the end of the week, Insurance climbed by 65.01 points, Others inclined by 26.45 points, Hotels increased by 28.15 points and Trading advanced by 0.70 point.


All in all, 177 scrips were traded, out of which 119 scrips gained, 15 scrips remained intact and 43 scrips suffered loss.

The company with highest turnover in general trading this week was Chilime Hydro power Co. (CHCL), closed at Rs 2738. Altogether, 136,944 share units worth Rs 366,311,379 were traded through 569 transactions.

The Broker with the highest transaction of CHCL was Broker No 49 (Online Securities Pvt.Ltd) with 67.20 percent standalone dealing, totaling 92,458 units worth Rs 246,176,015 via 44 transactions, which include nine matching transactions tallying 43,506 units worth Rs 115,770,834.

The best performer this week among the ordinary traded scrips was Premier Insurance co. Ltd. (PIC), closed at Rs 665, with a gain of Rs 371 or 60.82 percent. Whereas, Country Development Bank Ltd. (CNDBL), closed at Rs 196, was the worst performer with a decline of Rs 42 or 17.65 percent.