POLITICAL STALEMATE DRAGS NEPSE
Sharesansar, 18th December:
Nepal Stock Exchange (Nepse) which surged by more than 16 points in the last two trading days, today came down by 3.08 points. Following the positive sign from the big parties of Nepal towards the unity government, the market had a bullish mark until yesterday. However, the condition put forth by the Prime Minister to resign from his post has once again directed political situation into stalemate condition. The investors’ reaction towards this news from the beginning of the trade was in the negative as the market index came down by more than 5 points in the initial hour but later the local bourse narrowed its loss to close at 510.24 levels.
The Hydro sector which had added more than 30 points in past two days, today made a correction of 14.43 points. Among the three scrips traded under it, Arun Valley Hydropower Development Company Limited (AHPC) and Chilime Hydro power Co. (CHCL) came down by Rs 7 and Rs 26 whereas Butwal Power Co. Ltd. (BPCL) inclined by Rs 6 per unit. Similarly, Banking also plummeted by 6.74 points; the drop in the level of NABIL, SCB, NSBI, EBL along with another 17 scrips dragged the Banking sector today. Likewise, Hotels sector also dropped by 0.38 points as the only scrip traded under it i.e. Oriental Hotel Ltd. (OHL) closed in declining note.
As for gainers in the sectors today, Manufacturing sector added the most points as it climbed up by 42.08 points. The increment in the price level of Uniliver Nepal Ltd. (UNL), closed at Rs 8923, by Rs 811 or 10% mainly boosted the sector; the surge in the price level of UNL was the second highest among the shares traded today. Similarly, Others and Insurance followed in highest growth with 3.52 and 3.38 points respectively. The jump in Others came with a leap in the price of Nepal Doorsanchar Company Limited (NTC) by Rs 3 whereas the soar in the level of Nepal Life Insurance Co. Ltd. (NLIC) by Rs 58 mainly contributed in its sector growth. While, Development and Finance sectors ascended by 2.64 and 0.04 points respectively.
Overall there were 78 scrips traded among which 20 scrips increased, 7 remain intact and 51 scrips decreased. The highest gainer for the day was a Himalayan Finance Limited (Bittiya Sanstha), closed at Rs 39.46, with Rs 4 or 10.01% gain. Whereas, Muktinath Bikash Bank Ltd. (MNBBL), closed at Rs 259, was the highest loser among the ordinary share with Rs 15 or 5.47% loss. In terms of highest share traded, Nepal Bangladesh Bank Ltd. (NBB), closed at Rs 250, topped with 28,985 units
In terms of highest turnover, Nepal Investment Bank Ltd. (NIB), closed at Rs 933, topped with 17,465 units worth Rs 16,219,789 via 107 transactions; in which Broker No 6 (Agrawal Securities Pvt. Limited) was the most active broker with 30.55% stand alone dealing of NIB, tallying 5,348 units worth Rs 4,954,248 via 16 transactions which includes 5 matching transactions totaling 2,147 units worth Rs 1,995,663.
Despite the development of unfavorable political situation, the turnover still remained over Rs 100 million as it stood around Rs 113 million, this shows that market is not completely relied on political drama, but an overall interest has gained towards the market which is shown from the huge volume of transaction happens everyday . Overall, 292,654 units of share were traded via 1,296 transactions with the market capitalization of Rs 489,314.27 Millions at the end of the day.
