NIC Asia on Brokers' Radar from past few days; 4.37% away from 52-week high

~Rishab Agrawal

In the last three trading days, i.e. 30^th August, 2^nd and 3^rd September, around 247,945 units of shares of NIC Asia Bank (NICA) have been traded. While, more than 64% of the total share traded were held by only four brokers in the same time period. This is a fact that can’t be unseen.

The average monthly volume of the bank stands at 20,468.67 units while the average weekly volume is 56,589.20 units. Looking at the figures of volume traded in the last three trading days, they were 62,781 units, 91,649 units and 93,515 units respectively. These figures are way above the mentioned average volume.

(Picture taken from SSPro)

With the help of SS Pro, we have accumulated the data regarding the brokers holding NIC Asia shares and prepared a table that will clearly show who are the top four brokers who are holding more than 64% of the total traded shares of NICA.

(Picture taken from SSPro)

From the chart it is clear that brokers 58, 28, 4 and 59 are holding huge amount of shares of NICA. Let us look at the holding of each broker and their average buying and selling price:

(Picture taken from SSPro)

From the table above, we can infer that in the past three trading days, brokers 58, 28, 4 and 59 have been buying huge volume of the said shares and are currently holding 159,880 units of NICA. Brokers accumulating shares of NICA is a positive indicator for the shareholders as it indicates that the price of the shares will go up. Along with the quantity held by each broker, the average buying and selling price has also been mentioned which gives a view about the profit being earned by the brokers on trade of the share.

In the last three trading days, the price has increased from Rs 322 to Rs 359 to Rs 366 per unit and it is close to reaching the 52-week high mark of Rs.382 per unit. This increase may have number of reasons like bank aggressive strategy in terms of collecting deposits and disbursing loans, opening of branches and expanding its network throughout the country. In the recently published forecasted report of the bank, it is clearly mentioned that its EPS and net worth by the end of 2077/78 FY would be Rs 65.90 and 231 respectively, whereas it’s paid up capital and net profit during same period would be Rs 10.68 arba and Rs 7.04 arba respectively. If published forecasted report to be believed then the bank should announce 21% bonus share soon from the profit of last fiscal year to its shareholders. Whatever be the reason, it is not a matter of coincidence that the above mentioned brokers are buying and holding shares of NICA in a large volume. There is a high probability that some group of investors is behind this scrip.