POLITICAL CRISIS IMPACT NEPSE

Sharesansar, 16th January:

With the step taken by President to address the prevailing political stalemate in the country resulting nowhere; the investors who had entered the market after President’s action with high expectation seems to be losing interest in the market as the much needed political stability for the market to grow seems to be deteriorating day by day. Apart from it, the announcement of the opposition parties’ to protest against the government from the street has further plunged the confidence of investors. The impact of this political outcome was seen in the market index today as it came down by 2.11 to close at 528.13 levels.

The turnover of the market took a dip today as it stood around Rs 74.68 million, from past week the turnover in the market has not been in an inconsistent level compared to what it used to be before of over Rs 100 million. With the distribution of Civil Bank Ltd. non allotted IPO money started from today, there is high chances of increment in the turnover amount in the upcoming days. The total share traded tallied around 185,261 units which were carried through 1063 transactions.

There were altogether trade of seven sectors; in which Others and Finance sectors surged by 3.53 and 0.01 points respectively. The jump in Others was mainly because of the increase in the price of Nepal Doorsanchar Company Limited (NTC) by Rs 3. Whereas the soar in the value of Seti Finance Limited (SFL) and International Leasing And Fin. Co. (ILFC) mainly helped to sustain the Finance sector in green terrain.

While, Insurance suffered the most loss as it dropped by 5.44 points. Under this sector, the plunge in the level of Nepal Life Insurance Co. Ltd. (NLIC) and Sagarmatha Insurance Co. Ltd (SICL) by Rs 32 and Rs 20 respectively mainly contributed in the sector’s loss. Likewise, Banking plummeted by 3.82 points as the decline in Nepal Bank Limited (NBL), Nepal Investment Bank Ltd. (NIB), Global IME Bank Limited (Global IME) and Standard Chartered Bank Ltd. (SCB) by more than Rs 10 pulled the sector down.

Whereas, Hydro and Development decreased by 1.74 and 1.02 points respectively. In Hydro, the drop in Chilime Hydro power Co. (CHCL) by Rs 5 mainly dragged the sector down today. As for Hotels sector, it remains intact at 634.85 levels.

Overall there were only 75 scrips traded among which 22 scrips increased, 12 remain intact and 41 scrips decreased. The highest gainer for the day was, Purnima Bikas Bank Limited (PURBL), closed at Rs 83, with
Rs 4 or 5.06% gain. Whereas, Infrastructure Development Bank Limited (IDBL), closed at Rs 81, was the highest loser with Rs 9 or 10%. Among the shares trading over par value, Ace Development Bank Limited (ACEDBL), closed at Rs 126, had the highest gain of Rs 4 or 3.28% whereas Swabalamwan Bikash Bank (SWBBL), closed at Rs 327, had the highest loss of Rs 13 or 3.82%.

In terms of highest share traded, Agricultural Development Bank Ltd, closed at Rs 270, topped with 19,323 units. In terms of highest turnover, Bank of Kathmandu (BOK), closed at Rs 691, topped with 11,091 units worth Rs 7,630,875 via 34 transactions; in which Broker no 6 (Agrawal Securities Pvt. Limited) was the most active Broker with 42.16% stand alone dealing of BOK, tallying, 4,724 units worth Rs 3,216,970 via 4 buying transactions.