Nepse Wrap up (Review period 20th July to 24th July, 2014)

ShareSansar, 25th July:

Key stock index of Nepal, Nepse, after making 70 months high of 1083.55 level with record high turnover Rs 1.20 billion on Monday came to settle at 1079.09 this level.

It was for the first time in the history of Nepse that it carried out such huge turnover in a single day through general trading. The total market turnover this week stood at astounding Rs 4.48 billion compared to Rs 3.19 billion of prior week.

In addition to huge volume, the benchmark index surged by 33.20 points or 3.17 percent this week which was mainly fuelled by the buying sentiment in microfinance and, banking and financial institutions’ shares.

“The indication of raising the paid-up capital of microfinance institutions operating in districts in financial hubs by the new monetary policy on last Friday proved to be a driving factor for many MFIs’ scrips this week,” says one of the brokers.

Nirdhan Utthan Bank Ltd. (NUBL), Summit Micro Finance Development Bank Ltd. (SMFDB), Swabalamwan Bikash Bank (SWBBL), Sana Kisan Bikas Bank Ltd (SKBBL), Diprox Development Bank (DDBL), Swarojgar Laghu Bitta Bikas Bank Ltd. (SWBBL), Chhimek Laghubitta Bikas Bank Limited (CBBL), First Microfinance Development Bank Ltd. (FMDBL) and  Rural Microfinance Development Centre Ltd.  (RMDC) and increased by more than ten percent this week alone.

Similarly, most of the commercial banks’ scrips also flew high after the last Friday’ announcement of new monetary policy by NRB.

“The strong indication last Friday from the central bank, when announcing the new monetary policy that it is very strict when it comes to paid-up capital requirement proved to be catalyst for those commercial banks that are yet to shore up their paid-up capital to Rs 2 arba,” says one of the investors.

Among 28 traded banking scrips, only five scrips suffered loss while most of the remaining scrips made double digit incline.

Banking sector this week rallied by 38.04 points, Development added 78.15 points and Finance gained 35.12 points.

As for the remaining sub-groups, HOtels inclined by 85.33 points, Manufacturing advanced by 35.41 points whereas,  Hydro made hefty correction of 74.69 points following the shaky confidence of buyers towards Chilime Hydropower Co. Ltd’s scrips. The scrips dropped by Rs 88 or 3.21 percent to settle at Rs 2,650.

Likewise, Insurance decreased by 8.20 points and Others suffered loss of 1.79 points.

All in all, 170 scrips were traded, out of which 135 scrips gained, three scrips remained intact and 32 scrips suffered loss.

The company with highest turnover in general trading this week was Nepal Bank Limited (NBL), closed at Rs 525. Altogether, 1,187,708 share units worth Rs 576,966,394 were traded through 951 transactions.

The best performer this week among the ordinary traded scrips was Nepal Finance Ltd. (NFS), closed at Rs 146, with a gain of Rs 47 or 47.47 percent. Whereas, Lalitpur Finance Ltd. (LFC), closed at Rs 304, was the worst performer with a decline of Rs 24 or 7.32 percent.