Nepse Wrap up (Review period 3rd to 7th August, 2014)

ShareSansar, 8th August:

The benchmark index, Nepse, this week pared earlier gains to end 25.50 points lower, weighed down by losses in banking and financial institutions, hydro and insurance shares, to settle at 1040.59 level .

Hydro sector was the highest to suffer this week, as the sub-group dropped by massive 117.57 points

 “The interruption in five hydropower projects in Sindhupalchowk district because of the massive landslide has made investors cautious towards hydro sector,” says one of the investors, “Previously, investors thought of hydro sector as safe investment opportunity with less risk, but current outcome has made investors realize the vulnerability of this sector towards natural disasters.”

Chilime Hydro power Co. Ltd. (CHCL), Butwal Power Co. Ltd.(BPCL), Sanima Mai Hydropower Ltd. (SHPC), Arun Valley Hydropower Development Company Limited  (AHPC) and National Hydro Power Co. (NHPC) dropped by Rs 103, Rs 39, Rs 33, Rs 23 and Rs 2 respectively.

Similarly one of the brokers opined this week’s fall could be due to Traders and Investors being cautious following Nepse’s directives.

He says, “Investors and Traders this week became more cautious after last week’s directive given by Nepse to concern authorities to send all the Blank Transfer shares for Name Transfers.

 “As Nepse has asked them to settle the Name Transfer within 15 days time, the investors and traders however are not sure about it because of which they are liquidating the position rather than to wait for uncertain period for Ownership Transfer.”

To avoid the uncertainty and to capitalize on earlier weeks gain, the traders mostly liquidated banking and financial institutions, and insurance shares.

Banking tumble by 27.41 points, Development decreased by 11.27 points, Finance suffered loss of 20.13 points and Insurance declined by 89.15 points. Similarly, Hotels and Others also came down by 42.63 points and 1.18 points respectively.

As for Manufacturing, it increased by 16.94 points.

In case of, Sensitive index, which measures the movement of blue chip companies, it decreased by 5.39 points to settle at 223.03 level.  Likewise, Float index, which measures the movement of ordinary shares only, declined 1.95 points to settle at 73.69 level.

All in all, 176 scrips were traded, out of which 42 scrips gained, six scrips remained intact and 128 scrips suffered loss.

The company with highest turnover in general trading this week was Chilime Hydro power Co. (CHCL), closed at Rs 2,582. Altogether, 58,718 share units worth Rs 152,530,561 were traded through 478 transactions.

The Broker with the highest transaction of CHCL was Broker No 47 (Neev Securities Pvt. Ltd.) with 6.87 percent standalone dealing, totaling 8,104 units worth Rs 20,982,237 via 38 transactions, which includes one matching transaction of 300 units worth Rs 786,300.

The best performer this week among the ordinary traded scrips was Reliable Development Bank Limited (REDBL), closed at Rs 305, with a gain of Rs 109 or 55.61 percent. Whereas, Corporate Development Bank Ltd. (CORBL), closed at Rs 143, was the worst performer with a decline of Rs 41 or 22.28 percent.

The total turnover of the market for this week stood at Rs 2,432,634,134 totaling 5,242,681 share units which were traded through 18,847 transactions. The market capitalization at the end of the week tallied at 1,062,459.89 Millions