Nepse Wrap up (Review period 17th March, 2013 to 21st March, 2013)
Sharesansar, 22nd March:
Following the breakthrough in the prolonged political deadlock condition of the country in the previous week, the expectation of upward movement in the market seems to be proven wrong by this week’s local bourse progress as the index came down by 20.42 points to close at 527.98 levels. The fluctuation in this week clearly indicates that Nepal’s secondary market is also technically driven rather than the fundamental aspect.
As the Relative Strength Index (RSI) of Nepse was at 73.25 on the opening day of this week, signaling overbought in the market, technically indicating correction movement for the upcoming days which subsequently happened with the fall of 13.19, 4.64 points respectively in the initial two days. Then, on the third day, Nepse inclined by 1.55 points followed by yet another decline of 3.75 and 0.39 points in the subsequent days. With the correction in the benchmark index this week, the RSI has come down to 43.86 which suggest currently the market is in the neutral zone.
In the fundamental aspect, the book closure of the companies like Nepal Doorsanchar Company Limited (NTC), proposed 48% cash dividend, Nepal Credit And Com. Bank (NCC), proposed 5% bonus share and Muktinath Bikas Bank Ltd. (MBBL), proposed 10:3 right shares, also brought down the Nepse because of the adjustment in the scrips level. Along with this, the participation of the investors in the market was also lower compared to previous weeks as the launch of the New Fund Offer by Nabil Invest called ‘Nabil Balanced Fund –I’ lured the investors to divert their investment in this scheme which has a size of Rs 600 million.
With the attraction of the investors towards the NFO , the average turnover of the market also came to stand at only Rs 98.92 million which is lower by Rs 78.59 million or 44.27%; the overall market turnover was Rs 494.62 million. Likewise, the numbers of shares traded stood around 2.32 million which were carried out by the 6,626 transactions. The market capitalization at the end of the week tallied around Rs 512637.26 million which was lower by Rs 19,611.14 million.
Among the sub-indices, the Other sector plunge by a hefty amount of 56.38 points following the decline in the level of Nepal Doorsanchar Company Limited. Likewise, Hydro and Banking were other two sectors which made a heavy loss of 20.42 and 20.27 points respectively. In Hydro, the scrip of Butwal Power Co. Ltd. (BPCL) and Chilime Hydro power Co. (CHCL) suffered the loss of Rs 13 and Rs 26 respectively. Whereas in Banking, all the traded stock suffered loss this week, the scrips of NABIL Bank Limited Promoter Share (NABILPO), Everest Bank Ltd (EBL) and Himalayan Bank Ltd. (HBL) declined by more than Rs 60 this week.
Similarly, Finance and Development, both also plummeted by 3.19 and 2.56 points respectively. As for Trading , it dropped by 4.90 points following the drop in Bishal Bazaar Co. Ltd. (BBC) by Rs 49. While, Hotels and Manufacturing were the only two gainers with 7.15 and 1.64 points respectively. Among other sub-indices, Sensitive index decreased by 5.71 or 3.98% to settle at 137.9 levels while Float index also descent by 0.76 or 2.00% points to settle at 37.27levels.
Overall there were only 120 scrips traded among which 25 scrips increased 8 remained intact and 87 scrips decreased. The highest gainer among the scrips trading below par this week was, Supreme Development Bank Ltd. (SUPRME), closed at Rs 86, with Rs 10 or 13.15% gain; the surge was mainly because of the company’s proposal of 5% bonus share and 10% cash dividend to its shareholders. Whereas, Arun Finance Limited (ARUN), closed at Rs 26, was the highest loser with Rs 10 or 27.78%. Among the share trading above par, Siddhartha Insurance Limited (SIL), closed at Rs 211, was the top loser with Rs 62 or 22.71% loss whereas United Finance Ltd (UFL), closed at Rs 160, was the top gainer with Rs 16 or 11.11% gain.
In terms of highest share trade, Siddhartha Investment Growth Scheme-1 (SIGS1), closed at Rs 11.69, topped with 718,880 units. In case of turnover, Nepal Bangladesh Bank Ltd. (NBB), closed at Rs 328, still topped the chart with 194,485 units worth Rs 64,262,277 via 361 transactions; in which Broker no 28 (Shree Krishna Securities Limited) was the most active Broker with 29.53% stand alone dealing of NBB, tallying 57,510 units worth Rs 18,982,240 via 89 transactions which includes 2 matching transactions totaling 1,050 units worth Rs 343,850.
