Nepse Wrap up (Review period 25th Aug to 29th Aug, 2013)

ShareSansar, 30th  August

The capitalization of prior week’s profit by the investors put a dent in the progress of Nepse as the index that had gained more than 5 points, came to conclude with only 3.05 points gain by the end of the week.

From the start of the week, there were high presence of both buyers and sellers of the scrips. Seeing the surge of last week, the passive investors pounced in the market with hefty buying while the short term investors made the optimum utilization of previous week’s surge by liquidating their position.

Prevailing of such scenario, kept the market zigzagging between red and green for most of the trading day. However, the rally of 5.50 points on Tuesday helped the local bourse to stay floating in the bullish path.

The market index came to close at 551.37 levels after making six months high of 552.17 levels on Tuesday.

Among the 132 traded scrips, Nepal Bangladesh Bank Ltd. (NBB), closed at Rs 365, remained proactive throughout the week. The demand for the scrip sparked following the news of NBB in process to receive the owed amount from the Bangladesh based IFIC bank. NBB had given one month time to an IFIC bank to pay for the promoter share of NB Group which expired on 21st August.

By the end of the week, NBB had received Rs 77 crore from IFIC as first installment and remaining Rs 65 crore is due to be dispatched within next one month time.

Seeing such development in the NBB, the investors were swarming for the company’s share, attributing to a price hike of Rs 64 or 21.26% and a mammoth turnover of Rs 174,047,027 which was carried out by 1,140 transactions totaling 489,899 shares traded units.

The  broker with the highest transaction of NBB was Broker no 10 (Pragyan Securities Pvt. Limited) was the most active Broker with 6.33% standalone dealing of NBB, tallying 62,280 units worth Rs 22,048,356 via 139 transactions which  includes one matching transaction totaling 200 units worth Rs 72,000.

Apart from NBB, Alliance Insurance Company Limited (AIC), closed at Rs 258, also had a good run as it was the best performer with a gain of Rs 80 or 44.94% while Life Insurance Co. Nepal (LICN), closed at Rs 1306, was the worst performer with a loss of 363 or 21.74%, the reason behind downfall is due to its book closure adjustment for its upcoming 4:1 ratio Right Share issue to its shareholders.

As for the sub-indices, Hydro was the big performer this week with a surge of 91.57 points followed by Others with 5.87 points, Development with 1.67 points and Finance with 0.72 growths respectively.

Whereas, prior week’s top gainer, Insurance sector dropped by 6.54 points alongside 4.05 point loss of Hotels and 1.03 point decline of Banking.

Among other indices, Sensitive index, which measures the movement of blue chip companies, inclined by 0.42 points to settle at 136.84 levels. Likewise, Float index, which measures the movement of ordinary shares only, also increased by 0.21 points to settle at 38.71 levels.

The market participation this week was also impressive. The total turnover stood at Rs 872.19 million, with 3.08% increment in the daily average, tallying Rs 218.04 million compared to Rs 211.52 million average of the prior week.

Likewise, the amount of share traded rose to 2,621,917 units which were carried out by 8,235 transactions; the market capitalization came to close at Rs 549,835.83 million by the end of the week.