Nepse Wrap up (Review period 25th May to 28nd May, 2014)

ShareSansar, 30th May:

In the run up to the next fiscal year budget by the pro market government, the only stock market of Nepal this week skyrocketed to a 66 months’ high of 866.57 level.

With the gain of 14.51 points, the benchmark index of Nepal came to breach the previous 66 months’ high of 861.5 levels, which was set on 6th May of this fiscal year.

Previously, the market index witnessed this level was back in 2nd November, 2008, when the local bourse was free falling from 1175.38 level.

As the government in the upcoming budget is likely to announce securities transaction tax based on traded amount instead of the existing capital gain tax, the investors are positive towards reduction in the cost of investment.

In addition to it, the government is also expected to open direct investment of the Non-Resident Nepalis in the stock market. For this purpose, the Foreign Investment Policy, which envisages letting NRNs directly invest in the stock market, will be tabled for parliamentary deliberation soon the House session begins.

Spur by such development, the investors rush into the market this week to accumulate most of the insurance, hydro and banking shares.  

Of the total turnover of Rs 1.68 billion this week, banking sector weighted 38 percent, hydro sector covered 21 percent and Insurance sector stake was 22 percent.

Backed by hefty transaction, these sectors also made healthy incline. Banking surged by 10.49 points, Insurance advanced by 34.65 points and Hydro rallied by massive 173.58 points. The mammoth increase in Hydro sector was primarily contributed by Chilime Hydropower Co. Ltd. (CHCL) as the scrip propel by Rs 192 to close at Rs 2290.

Not only CHCL witnessed triple digit increase but it also had the highest turnover among traded shares this week. Altogether, 115,799 units of CHCL’s shares worth Rs 255,514,837 were traded through 809 transactions.

The Broker with the highest transaction of CHCL was Broker No 45 (Imperial Securities Co .Pvt.Limited) with 6.18 percent standalone dealing, totaling 14,279 units worth Rs 31,583,769 via 102 transactions, which include nine matching transactions tallying 1,150 units worth Rs 2,538,544.

As for the movement of remaining sub-indices, Manufacturing added 38.50 points, Hotels propelled by 45.34 points, Development ascended by 4.02 points, Finance inclined by modest 0.71 point while Others suffered loss of 3.52 points.

In case of, Sensitive index, which measures the movement of blue chip companies, it rocketed by 3.53 points to settle at 184.84 level.  While, Float index, which measures the movement of ordinary shares only, increased by 1.14 points to settle at 59.56 level.

The best performer this week among the ordinary traded scrips was Subhechha Bikas Bank Limited (SUBBL), closed at Rs 280, with a gain of Rs 60 or 27.27 percent. Whereas, Seti Finance Limited (SETI), closed at Rs  158, was the worst performer with a decline of Rs 17 or 9.71 percent.