Nepse Wrap up (Review period 6th July to 10th July, 2014)

ShareSansar, 11th July:

The only stock market of Nepal this week final breached the 1000-point mark after a hiatus of six years. Last time, the benchmark index breached the 1,000-point mark was on Sept 18, 2008.

Attributed by the strong buying pressure, the market came to break the four digit level on Tuesday with a gain of 19.48 points. Continuing its rally till the end of the week, the index came to make total rally of 50.62 points, which is one of the highest inclines in a week post second Constituent Assembly.

The benchmark index this week closed at 1,023.67 level.

 Following the second Constituent Assembly election and formation of pro-market government, the market index has been on Bull Run. Post formation of Congress led government, the Nepse index has come to surge by nearly 300 points within time period of seven months.

If experts view is to go by, the Nepse index could surpass its all-time high of 1,175 points by the start of the new fiscal year. Nepse had hit its peak on August 31, 2008 before plunging to its lowest of 292.31 points on June 15, 2011.

Going by this week’s sentiment, where the market even after two weeks’ of continues rally is still witnessing heavy demand and even the profit booking in recent gainers are having less impact,  the possibility of breaking its previous high seems to be on the card in near future.

In addition, the increasing participation of new investors and traders are moreover increasing the market depth and size, which was apparent from this week’s total turnover of Rs 4.46 billion compared to Rs 3.21 billion of prior week.

Most of the demand in this too was observed in banking and financial institutions’ scrips along with hydro and insurance shares.

Insurance this week despite profit-taking in latter days, still sustained gain of 88.33 points compared to prior week’s level. Similarly, Hydro increased by 77.83 points, Banking added 58.40 points, Development inclined by 45.20 points and Finance advanced by 15.50 points.

As for Other ,it surged by 24.67 points followed by Hotels with 16.48 points increment and   Manufacturing  with 4.24 points climb.

In case of, Sensitive index, which measures the movement of blue chip companies, it increased by 11.72 points to settle at 219.53 level.  Likewise, Float index, which measures the movement of ordinary shares only, climbed 3.82 points to settle at 72.05 level.

 All in all, 170 scrips were traded, out of which 142 scrips gained, eight scrips remained intact and 20 scrips suffered loss.

The company with highest turnover in general trading this week was Chilime Hydro power Co. (CHCL), closed at Rs 2655. Altogether, 80,266 share units worth Rs 213,954,385 were traded through 509 transactions.

The Broker with the highest transaction of CHCL was Broker No 49 (Online Securities Pvt.Ltd) with 13.99 percent standalone dealing, totaling 23,718 units worth Rs 59,884,977 via 93 transactions, which include 16 matching transactions tallying 5,328 units worth Rs 13,874,844.

The best performer this week among the ordinary traded scrips was NDEP Development Bank Limited (NDEP), closed at Rs 190, with a gain of Rs 67 or 54.47 percent. Whereas, Everest Finance Ltd. (EFL), closed at Rs 157, was the worst performer with a decline of Rs 15 or 8.72 percent.