Nepse Wrap up (Review period 28th April to 2nd May, 2013)

Sharesansar, 3rd May:

Following the tumbling performance of 10.70 points in the prior week, the secondary market of Nepal this week also continued with the same action. The market index this week plunged below 500 levels after trading for more than four and a half months over this mark.

With the investors sentiment on the down side as per the fear of oversupply of shares in the market in the coming days ahead. Mainly, there is this new provision brought by the SEBON regarding offloading promoters shares from existing 70% to 51% if needed, and also the investors in row to accumulate funds for the soon to come IPOs of Mega Bank and other institutions along with the right share of Nepal Bank Limited have flooded the market with the oversupply of shares, resulting in loss this week also. Moreover, BFI’s have increased the deposit interest rates which show the sign of liquidity crunch prevailing in the market, which is again not a good sign for the secondary market of Nepal.  The local bourse this week came down by 15.52 points to close at 492.84 levels.

Among the performance of sub –indices this week, Hotels sector only made the gain of 9.25 points whereas the rest of the sub-indices settled in the red zone. Insurance this week plummeted by a hefty 39.83 points followed by Hydro with a loss of 24.16 points. Similarly, Others also made a huge drop of 23.49 points this week.

In case of the Banking and Financial Institutions sub-indices, Banking lost 14.22 points, Development made decline  of 2.90 points and Finance plummeted by 4.48 points. Also, Sensitive index declined by 3.86 or 3.02% to settle at 124.11 levels while Float index also lost 0.78 or 2.16% points to settle at 35.25 levels .

Overall, there were only 113 scrips traded among which 18 scrips increased 17 remained intact and 78 scrips decreased. The highest gainer among the scrips traded this week was Triveni Bikas Bank Limited (TBBL), closed at Rs 147, with Rs 8 or 5.76% gain. Whereas, National Hydro Power Co. (NHPC), closed at Rs 61, was the highest loser with Rs 16 or 20.78% loss.

Among the scrips trading above par, Nepal Bank Limited (NBL), closed at Rs 564, was the worst performer with Rs 141 or 20% loss. As the company is in phase of issuing 1:9.5 right shares, the general investors those who are not being able to accumulate funds for this issue are currently dumping the shares of the company which in overall is impacting the price level of the scrips in recent days.

In terms of the highest shares traded, National Hydro Power Co. (NHPC), closed at Rs 61, topped with 232,451 units whereas among the ordinary scrips trading above par, Civil Bank Ltd (CBL), closed at Rs 151, topped with 52,915 units. As for highest transaction, Nepal Bank Limited (NBL), closed at Rs 564, topped with 325 times.

In case of highest turnover, Everest Bank Ltd (EBL), closed at Rs 1526, topped with 22,620 units worth Rs 34,756,263 via 103 transactions; in which Broker no 17 (ABC Securities Pvt. Limited) was the most active Broker with 25.83% stand alone dealing of EBL, tallying 11,701 units worth Rs 17,956,194 via 11 transactions.

The week’s turnover was about Rs 280.732 million with average of Rs 70.18 million which is lower by Rs 25.35 million or 26.54% higher than prior week’s average. Overall 975,849 units of shares were traded via 4,108 transactions. The total market capitalization at the end of the review period was Rs 480547.15 million.