Nepse Wrap up (Review period 8th Dec to 12th Dec, 2013)

ShareSansar, 13th December

This week too, Nepal Stock Exchange (NEPSE) propelled further to create new height. Breaking its prior week pinnacle of 707.41 levels, the secondary market this week came to settle at 713.92 level which is new 51 months high.

Coming to the start of this week, many had expected hefty correction this week as the stock market of Nepal had witnessed more than 9 percent leap in a single week.  But to many dismay, the market continued to surge this week also. Making its upward progress, the stock index came to add 6.51 points this week.

Though the market in the initial trading day of this week hinted of correction as the local bourse dropped by 4.92 points, the news of implementation of BASEL III by Nepal Rastra Bank propelled the market to new peak.

With the enforcement of BASEL III, the Banking and Financial Institutions are bound to increase their paid up capital. As per the spokesperson of NRB, the commercial banks are required to soar up their paid up to Rs 5 billion within next 6 years time. Likewise, Development and Finance will also be required to enlarge their paid up capital so as to meet the requirement of BASEL III criteria.

Citing such scenario, the investors this week took the opportunity to grab the BFIs scrips in expectation of the bonus and right shares in future date which attributed in boosting the overall market.

Among the BFIs, the investors mainly bought commercial banks’ scrips which in progress propelled the Banking sector by 22.98 points. Similarly, Finance also surged by 6.52 points whereas Development dropped by 5.20 points. Likewise, Hydro sector gained 4.27 points.

Meanwhile, Insurance sector this week made a hefty correction of 106.19 points, alongside it Hotels and Others also dropped by 35.12 points and 23.49 points respectively. As for Manufacturing, it remained intact at 934.55 levels.

On the other hand, contrary to NEPSE movement, Sensitive index which measures the movement of blue chip companies, declined by 4.09 points to settle at 161.31 levels.  However, Float index, which measures the movement of ordinary shares only, propelled by 0.52 points to settle at 48.23 levels.

All in all, the 149 scrips were traded this week, out of which 79 scrips gained, 7 remained intact and 63 scrips lost.

The worst performer this week among the traded scrips was NABIL Bank Limited Promotor Share (NABILP), closed at Rs 1400, with loss of Rs 345 or 19.77 percent whereas the best performer was  KIST Bank Limited (KIST), closed at Rs 199, with a gain of Rs 62 or 45.26 percent.

After the cancellation of the merger process with Vibor Bikas Bank Ltd, the trading of KIST shares was resumed from this week in the secondary market. As the KIST price is comparatively lower than the other commercial banks, the traders took this opportunity to grab the scrip at current prices in speculation of price level increase upto Rs 250 within a short span of time.

Driven by such expectation, the market witness the hefty transaction of KIST as it had the highest turnover and shares traded this week.

Altogether, 1,250,515 units of shares were traded through 40 transactions worth Rs 222,077,510.

The  broker with the highest transaction of KIST was Broker no 45 (Imperial Securities Co .Pvt.Limited) was the most active Broker 47.96 % standalone dealing of KIST tallying 1,192,105 units worth Rs 213,019,620 via 11 transactions which  includes 2 matching transactions totaling 141,000 units worth Rs 25,440,000.

The overall market turnover this week came to stand at an astounding figure of Rs 1,988,574,144. Overall 6,494,050 units of shares were traded through 14,228 transactions. The market capitalization at the end of the week tallied at 724,558.21 million.