Political uncertainty hits investor confidence
KATHMANDU, JAN 27:
Investors are switching over to a wait-and-watch mode as the stock market index continued its slide this week — January 20 to 24.
The benchmark index slumped 6.6 points as ongoing political uncertainty regarding formation of a national consensus government has affected investor confidence. Likewise, investors are waiting for companies to publish second quarter financials before taking any decision in current volatile environment.
The market opened at 520.77 points on Sunday and slid to 508.23 points by the time of closing. The index jumped to 518.14 points on Monday. The climb continued till Tuesday as the index reached 522.49 points. However, the index could not sustain the ascent and in the following two days, it plunged to 514.17 points by the time of closing.
Trading volume also did not change much as investors are wary in the present context. In five trading days, the market witnessed trading of 2.01 million unit shares worth Rs 347.5 million of 104 companies in 5287 transactions. This week, trading volume declined by 10 per cent. Trading worth Rs 397 million was undertaken last week.
Stock trading of class ‘A’ companies accounted for 53.40 per cent of total trading, amounting to Rs 185.6 million. The sensitive index declined by 1.81 points. The float index went down by 0.33 points to 35.08 points.
This week also, the hydropower subgroup was the biggest loser. Chilime Hydropower lost Rs nine per unit. Likewise, Arun Valley Hydropower and Butwal Power Company also lost Rs 20 and Rs 25, respectively. The loss in their share prices pulled the hydropower index down by 23.26 points.
The banking subgroup lost 8.48 points as the shares of big banks also took a plunge. This week, hotels subgroup lost 2.6 points. Likewise, manufacturing and others lost 3.82 points and 4.69 points, respectively. Development banks and finance companies too lost 2.72 points and 0.92 points, respectively. Only insurance subgroup registered a gain, earning 3.66 points.
This week, Nepal Bangladesh Bank was the forerunner in terms of trading volume with trading worth Rs 36.7 million. In terms of number of shares traded, Siddhartha Investment Growth Scheme –I was the forerunner with trading of 1.03 million unit shares. Global IME Bank topped in terms of number of transactions with 279 transactions.
Top five companies in terms of turnover were Nepal Bangladesh Bank (Rs 36.77 million), Everest Bank (Rs 25.36 million), Global IME Bank (Rs 24.15 million), Bank of Kathmandu (Rs 23.29 million) and Chilime Hydropower Company (Rs 18.27 million).
Source: The Kathmandu Post
