Selling pressure pulls Nepse
KATHMANDU, June 27:
Selling pressure of investors wanting to liquidate their stocks pulled the stock index today by 17.62 points in a day’s trading as the secondary market closed at 346.78 points by the end of the trading from morning’s opening of 364.40 points.
“The investors, who have been holding bulk shares and those, who were under pressure from banks to pay loan and margin call might have started to sell pulling the whole secondary market down,” said general secretary Nepal Stock Investors’ Association Prakash Rajoria.
“It is nothing out of way, the share market will not probably retreat as around this time investors purchase shares for long term investment for underlying benefits such as dividends,” he pointed out.
Nepse index had witnessed rare rush last week after going through a long lull as in a single week the index rose by 60.9 points.
The recent rush last week was attributed to signalling effect that possible entry of institutional investors and central bank’s decision to revise the conditions for lending against loans, though it has yet to be materialised.
The share prices have touched low of 292 points two weeks back making the investors buy the shares to profit by buying at low price and selling later when the prices start to move up.
“The increment in trading volume and share prices mean the market is moving towards better prospects and investors’ confidence has found new ground,” said Rajoria.
Today, 158,837-unit shares were traded amounting to Rs 59 million through 1,209 transactions in Nepse.
Nepal Telecom lost Rs 44 in a unit share pulling the others subgroup by 51.69 points.
Another heavyweight subgroup that has been affecting the direction of market since last few months — hydropower subgroup — also went down by 31.16 points.
On a single unit of share, Arun Valley Hydropower lost Rs 16, Chilime Hydropower lost Rs 89 and Butwal Power Company lost Rs 10 today.
As major commercial banks like Standard Chartered Bank lost heavily in the day’s trading the banking subgroup went down by 16.91 points. Development banks subgroup also went down by 0.39 points.
Finance company subgroup and insurance subgroup also ended up in green zone by earning 1.32 points and 2.59 points, respectively.
However, manufacturing subgroup gained 10.87 points as Bottlers Nepal Balaju earned Rs 99 on a unit share.
Source: THT
Selling pressure of investors wanting to liquidate their stocks pulled the stock index today by 17.62 points in a day’s trading as the secondary market closed at 346.78 points by the end of the trading from morning’s opening of 364.40 points.
“The investors, who have been holding bulk shares and those, who were under pressure from banks to pay loan and margin call might have started to sell pulling the whole secondary market down,” said general secretary Nepal Stock Investors’ Association Prakash Rajoria.
“It is nothing out of way, the share market will not probably retreat as around this time investors purchase shares for long term investment for underlying benefits such as dividends,” he pointed out.
Nepse index had witnessed rare rush last week after going through a long lull as in a single week the index rose by 60.9 points.
The recent rush last week was attributed to signalling effect that possible entry of institutional investors and central bank’s decision to revise the conditions for lending against loans, though it has yet to be materialised.
The share prices have touched low of 292 points two weeks back making the investors buy the shares to profit by buying at low price and selling later when the prices start to move up.
“The increment in trading volume and share prices mean the market is moving towards better prospects and investors’ confidence has found new ground,” said Rajoria.
Today, 158,837-unit shares were traded amounting to Rs 59 million through 1,209 transactions in Nepse.
Nepal Telecom lost Rs 44 in a unit share pulling the others subgroup by 51.69 points.
Another heavyweight subgroup that has been affecting the direction of market since last few months — hydropower subgroup — also went down by 31.16 points.
On a single unit of share, Arun Valley Hydropower lost Rs 16, Chilime Hydropower lost Rs 89 and Butwal Power Company lost Rs 10 today.
As major commercial banks like Standard Chartered Bank lost heavily in the day’s trading the banking subgroup went down by 16.91 points. Development banks subgroup also went down by 0.39 points.
Finance company subgroup and insurance subgroup also ended up in green zone by earning 1.32 points and 2.59 points, respectively.
However, manufacturing subgroup gained 10.87 points as Bottlers Nepal Balaju earned Rs 99 on a unit share.
Source: THT
