Nepse Wrap up (Review period 16th Feb to 20th Feb, 2014)

ShareSansar, 21st Feb:

Continuing with its upbeat performance, the only secondary market of Nepal witnessed yet another spectacular week as the local bourse rallied by further 19.57 points to settle at 822.67 level. With the double digit incline of this week, the market now has reached 63 months high. Last time, the market observed this level was back in month of November, 2008.

The positive whim witnessed in the hydro and insurance scrips mainly attributed in the market growth. Both sub-indices experienced a massive incline this week as Hydro surged by 86.79 points or 4.29 percent and Insurance skyrocketed by 358.46 points or 14.41 percent.

As the investors are reluctant to sell the insurance shares in expectation of good return-in form of bonus shares-in future, the supply of shares in market has come down while demand has increased drastically, which have attributed to hefty growth in this sector. The expectation of bonus shares is mainly driven by the speculation of increment of paid up capital of Life and Non life insurance to Rs two billion and Rs one billion respectively by the regulator in coming days.

Apart from the above factor, the unopposed selection of CA chairman and the assurance from prime minister Sushil  Koirala about forming new Cabinet within days to come have boosted the investor confidence towards the betterment of political environment and end of the political tussle between the Nepali Congress and the CPN-UML.

Buoyed by these factors, most of the traded scrips landed in the green terrain this week. Among, the 148 traded scrips, 96 scrips gained, 12 remained intact and 40 scrips lost.

Apparently, the growth in hydro and insurance sector also provided a signaling effect in other remaining sectors. Coming to the end of the week, Banking sector, which suffered back to back loss in initial trading days, was able to recoup by 2.50 points.

Likewise, Finance and Development had better run than Banking this week as both propelled by double digit figure of 30.83 and 19.0 points respectively.

Meanwhile, Hotels was the only sector to suffer loss as it dropped by 25.68 points. As for Others, it remained intact at 793.02 level.

In case of, Sensitive index, which measures the movement of blue chip companies, it inclined by 3.01 points to settle at 178.64 level.  Likewise, Float index, which measures the movement of ordinary shares only, also increased by 1.49 points to settle at 55.19 level.

The best performer this week among the traded scrips was Kalika Microfinance Development Bank Ltd. (KMCDB), closed at Rs 691, with a gain of Rs 218 or 46.09 percent. Whereas, Sewa Bikas Bank Limited (SEWA), closed at Rs 244, was the worst performer among all with a decline of Rs 21 or 7.9 percent.

The scrip with the highest turnover was Nepal Life Insurance Co. Ltd. (NLIC), closed at Rs 4527, with 16,707 units worth Rs 73,364,199 which was carried out by 85 transactions.

The Broker with the highest transaction of NLIC was Broker No 28 (Shree Krishna Securities Limited) with 36.65 percent standalone dealing, totaling 11,966 units worth Rs 53,778,388 via 15 transactions, which includes five matching transactions, tallying 5,000 units worth Rs 22,465,000.

The total turnover of the market for this week stood at Rs 1,112,697,596, totaling 2,854,194 share units which were traded through 9,386 transactions. The market capitalization at the end of the week tallied at 838,021.76 Millions.