Nepse Wrap up (Review period 6th Nov to 7th Nov, 2013)

ShareSansar, 8th  November

Making a meager gain this week, the secondary market of Nepal was able to settle 0.04 points higher than the prior week’s closing level at 579.45 levels.

Following the festive holidays, the market resumed its trading on Wednesday but the excitement among the investors was not observed as the market index suffered a loss of 0.17 points along with more than 30 percent slack in turnover than prior day’s amount.

However, coming in the next day with the increase of investor participation in the market, as the turnover surged more than 50 percent compared to Wednesday’s amount, the NEPSE index made a bounce back of 0.21 points.

With the publication of healthy first quarter financial reports from the listed companies in NEPSE like Global IME Bank Limited (GBIME), Mega Bank Limited (MEGA) along with other financial institutions, the investors are expecting similarly reports from the remaining companies. Such anticipation helped the market to propel in the initial hour of Thursday trade but was not adequate enough to keep the market on the higher side.  

However, it can be anticipated that with more publication of financial results of commercial banks along with other big companies, the sentiment of the investors will be on the positive side which surely be merrier for the overall market.

While market index made little gain, some of the scrips this week made an enormous jump in their respective price level. Among many, Commerz and Trust Bank Nepal Ltd. (CTBNL) stood out in front with a huge surge of Rs 29 or 17.36 percent. Following the rumors of CTBNL in the merger process with GBIME, the investors are in a row to get their hands in this company’s share.

Within the last two trading days, the demand of the CTBNL swirled so high that the price of the scrip rocketed up by more than seven percent on each day. Similarly, the company made a chuck of transactions making it the best performer in all fronts like highest turnover, shares traded and transactions. Altogether, 172,850 units of shares were traded through 875 transactions worth Rs 31,507,267.

The  broker with the highest transaction of CTBNL was Broker no 42 (Sani Securities Co. Ltd.) was the most active Broker with 15.27% standalone dealing of CTBNL tallying 50,557 units worth Rs 9,619,795 via 163 transactions which  includes 2 matching transactions totaling 700 units worth Rs 130,800.
 
Along with CTBNL, Nilgiri Bikas Bank Limited (NGBL), Siddhartha Insurance Limited (SIL) and First Microfinance Development Bank Ltd. (FMDBL) also had a good run with more than 10 percent surge respectively.

Whereas, Sewa Bikas Bank Limited (SEWA) had the worst performance among all with a decline of Rs 8 or 7.27 percent.

As for the sub-indices movement, Banking, Others and Manufacturing were the only sectors to suffer a loss of 1.08, 1.17 and  5.46 points respectively.

Meanwhile, Insurance and Hotels made a hefty surge of 13.05 and 13.76 points respectively. Similarly, Development, Finance and Hydro also maintain gain of 1.99, 1.09 and 0.74 points respectively.

On the other hand, Sensitive index which measures the movement of blue chip companies, declined by 0.41 points to settle at 137.28 levels.  Likewise, Float index, which measures the movement of ordinary shares only, also skid by 0.11 points to settle at 40.44 levels.

All in all, the 104 scrips were traded this week, out of which 47 scrips gained, 15 remained intact and 42 scrips lost. Overall, 825,040 units of shares were traded by 3,734 transactions worth Rs 225,443,948. The market capitalization at the end of the week stood at Rs 587,752.75 Millions.