Nepse Wrap up (Review period 5th May to 9th May, 2013)

Sharesansar, 10th May:

The secondary market of Nepal this week also came to halt in the bearish zone despite the reassurance from SEBON that the market will not overflow with the shares by their decision. A few weeks back, the SEBON had made an announcement regarding conversion of promoter share which created panic among investors of oversupply in market resulting in the plunge of local bourse below 500 levels.

Though the recent statement from the SEBON on somewhat ground helped to create a positive sentiment against investors as the market rallied by 8.50 points on Tuesday, the benchmark Nepse index below 500 levels still made investors persist to liquidate shares in fear of more bearish in the market, resulting overall plummet of 6.56 points this week to close at 486.28 levels.  

Despite the drop in the level of market, the daily average turnover this week rallied by 41.06% to Rs 102.28 million. The total turnover this week stood at Rs 511.413 million which were carried out by 5,374 transactions totaling 2,506,530 units whereas the market capitalization dropped by Rs 2,606.56 million to close at Rs  477,940.59 million.

The increment in the turnover was mainly because of the Nepal Bank Limited (NBL), closed at Rs 14. As the Bank is floating 1:9.5 right shares from 23rd may, 2013, and the book closure date was on this week, the scrip was highly traded resulting top in terms of highest transaction and turnover, and highest share traded amongst the ordinary scrips with 475,834 units worth Rs 235,570,791 via 1077 transactions; in which Broker no 17 (ABC Securities Pvt. Limited) was the most active Broker with 58.18% stand alone dealing of NBL, tallying 319,634 units worth Rs 277,094,322 via 214 transactions which includes 23 matching transactions totaling 247,326 units worth Rs 120,290,254.

Among the performance of sub –indices this week, Manufacturing sector only made the gain of 0.27 points whereas the rest of the sub-indices settled in the red zone. Insurance this week also plummeted by a hefty 20.32 points followed by Hydro with a loss of 11.22 points. Similarly, Others and Hotels also made a tumble of 5.88   and 0.21 points respectively.

In case of the Banking and Financial Institutions sub-indices, Banking lost 7.99 points, Development made decline  of 0.22 points and Finance plummeted by 0.63 points. Also, Sensitive index declined by 1.74 or 1.40% to settle at 122.37 levels while Float index also lost 0.41 or 1.16% points to settle at 34.84 levels .

Overall, there were only 110 scrips traded among which 32 scrips increased 14 remained intact and 64 scrips decreased. The highest gainer among the scrips traded this week was Nirdhan Utthan Bank Ltd. (NUBL), closed at Rs 244, with Rs 30 or 14.02% gain. Whereas, Nepal Bank Limited (NBL), closed at Rs 145, was the worst performer with loss of Rs 419 or 74.29% loss.