Nepse Wrap up (Review period 22nd Sept to 26th Sept, 2013)

ShareSansar, 27th September

Divergence of Investors in the Initial Public offering of two companies, floated this week, along with the nearing of the festive season slumps the secondary market of Nepal this week.  The market index this week dropped by a huge margin of 7.28 points to close at 541.7 levels.

Latest two IPOs of Kalika Micro Credit Development Bank Limited and Samina Mai Hydropower Limited this week diverted the investors towards the primary market in anticipation of safe return, which totaling diluted the Nepse index in the initial two days as the market made tumble of 7.47 and 3.20 points in consecutive days.

Both the IPOs were able to attract the massive response as the Micro Development Bank, which issued 200,000 units, got oversubscribed by 58 times whereas Sanima Mai Hydro power Ltd, which issued 2,110,000 got oversubscribed by nearly 30 times.

Convergence of investors towards primary market not only dragged the index but also sponged the volume of the market as the average daily turnover stood at Rs 121.10 million from Rs 143.99 million of the prior week. Overall, 2,025,318 units of share were traded through 8,051 transactions worth Rs 605.53 million this week.

Further, the nearing of the festive season of Dashain has made investors liquidate their position in order to accumulate funds for the occasion, which has also not put Nepse at ease from selling pressure in recent days.

Though, the market bounced on third and the fourth trading day of this week , it was not enough to create any positive influence as on the last trading day the market yet again suffered the loss.

Most of the investors this week were found liquidating the Banking and Insurance scrips, attributing to the loss of 9.88 and 42.90 points in respective sectors. Along with them, Others also made a decline of 2.35 points whereas Manufacturing, whose scrips are not so frequently traded in the market, made a plunge of 27.43 points.

Only, four sectors were able to make gains this week. Hotels was the highest with 28.58 points followed by Hydro with 8.53 points , Finance with 2.83 points incline and Development with 0.18 points climb.

Among other indices, Sensitive index, which measures the movement of blue chip companies, declined by 2.35 points to settle at 129.83 levels. Likewise, Float index, which measures the movement of ordinary shares only, also decreased  by 0.45 points to settle at 38.57 levels.

All in all, the 133 scrips were traded, out of which 45 scrips gained, 13 remained intact and 75 scrips lost.

The best performers for the week was, Supreme Development Bank Ltd. (SUPRME), closed at Rs 83, with Rs 13 or 18.57 percent gain. Whereas, Bottlers Nepal (Terai) Ltd. (BNT), closed at Rs 1144, was the top loser with Rs 250 or 17.93 percent loss.

They share with the highest turnover this week was, Kailash Bikas Bank Ltd. (KBBL), closed at Rs 179, with 494,542 units worth Rs 108,304,487 which were carried by the 111 transactions.