Signal-effect pushes secondary market up
KATHMANDU, June 26:
Encouraged by the positive signals from the central bank and Finance Ministry, the secondary market zoomed up this week by a whopping 60.9 points to close at 364.40 points from the opening of 303.5 points.
The Nepse index rose by 60.9 points this week as the investors renewed confidence in the secondary market after the news of probable active participation of institutional investors in the secondary market and the central bank revising the provision for loans against shares.
Though, experts doubt sustainability of the sudden surge, the market rallied all the four days this week boosting transaction volume.
Nepse’s trading floor witnessed 63.35 per cent increment compared to a week ago as the market started to bolster up after hitting rock bottom.
The stock exchange observed trading of 605,468 unit shares of 101 companies worth Rs 165.5 million through 3,631 transactions in the four trading days.
On Sunday morning, the market opened at 303.5 points that surged to 318.99 points by the closing time triggering all three circuit breaker. Next day also the index shut up to 330.76 points and the rise continued on Tuesday also and the market touched 344.22 points by the closing time. Wednesday did not see any trading as it was a public holiday but the rally continued on Thursday to as it surged to 364.40 points triggering circuit breaker.
The sensitive index measuring the performance of Class ‘A’ companies increased by 15.91 points reaching 90.71 points on a week’s trading. Among the total transactions, the trading of class ‘A’ companies consisted of 69.70 per cent amounting to Rs 115.2 million. Similarly, the float index — that indicates the performance of the actual shares traded throughout the week — went up by 5.66 to close at 30.76 points.
This week hydropower subgroup went up by a whopping 140.13 points as Arun Valley, Chilime Hydropower and Butwal Power Company’s share prices gained.
Nepal Telecom’s share prices increased by Rs 54 per unit pushing others subgroup by 63.43 points.
Commercial banks earned 78.41 points followed closely by development banks and finance companies that went up by 19.17 points and 7.29 points, respectively. Insurance subgroup also went up by 29.19 points this week.
Manufacturing subgroup — that is more passive in the secondary market — also went up by 24.23 points as Unilever and Bottlers Nepal (Balaju) stock prices gained.
However, hotels and trading subgroup lost 1.27 points and 0.3 points, respectively.
Bank of Kathmandu topped the charts in terms of transaction amount with the transaction volume of Rs 32.5 million.
And, in terms of numbers of shares traded NCM Mutual Fund was front runner by trading of 131,500 units of its shares and Jyoti Bikas Bank topped in terms of number of transactions with 344 transactions.
Similarly, Bank of Kathmandu (Rs 32.50 million), Standard Chartered Bank Nepal (Rs 30.54 million), Nabil Bank (Rs 12.30 million), Prime Commercial Bank (Rs 9.69 million) and Nepal Telecom (Rs 8.32 million) were the top five performers of the week.
Corporate Development Bank’s 2-million units of ordinary shares were listed in the secondary market this week increasing the total number of listed shares.
Source: THT
Encouraged by the positive signals from the central bank and Finance Ministry, the secondary market zoomed up this week by a whopping 60.9 points to close at 364.40 points from the opening of 303.5 points.
The Nepse index rose by 60.9 points this week as the investors renewed confidence in the secondary market after the news of probable active participation of institutional investors in the secondary market and the central bank revising the provision for loans against shares.
Though, experts doubt sustainability of the sudden surge, the market rallied all the four days this week boosting transaction volume.
Nepse’s trading floor witnessed 63.35 per cent increment compared to a week ago as the market started to bolster up after hitting rock bottom.
The stock exchange observed trading of 605,468 unit shares of 101 companies worth Rs 165.5 million through 3,631 transactions in the four trading days.
On Sunday morning, the market opened at 303.5 points that surged to 318.99 points by the closing time triggering all three circuit breaker. Next day also the index shut up to 330.76 points and the rise continued on Tuesday also and the market touched 344.22 points by the closing time. Wednesday did not see any trading as it was a public holiday but the rally continued on Thursday to as it surged to 364.40 points triggering circuit breaker.
The sensitive index measuring the performance of Class ‘A’ companies increased by 15.91 points reaching 90.71 points on a week’s trading. Among the total transactions, the trading of class ‘A’ companies consisted of 69.70 per cent amounting to Rs 115.2 million. Similarly, the float index — that indicates the performance of the actual shares traded throughout the week — went up by 5.66 to close at 30.76 points.
This week hydropower subgroup went up by a whopping 140.13 points as Arun Valley, Chilime Hydropower and Butwal Power Company’s share prices gained.
Nepal Telecom’s share prices increased by Rs 54 per unit pushing others subgroup by 63.43 points.
Commercial banks earned 78.41 points followed closely by development banks and finance companies that went up by 19.17 points and 7.29 points, respectively. Insurance subgroup also went up by 29.19 points this week.
Manufacturing subgroup — that is more passive in the secondary market — also went up by 24.23 points as Unilever and Bottlers Nepal (Balaju) stock prices gained.
However, hotels and trading subgroup lost 1.27 points and 0.3 points, respectively.
Bank of Kathmandu topped the charts in terms of transaction amount with the transaction volume of Rs 32.5 million.
And, in terms of numbers of shares traded NCM Mutual Fund was front runner by trading of 131,500 units of its shares and Jyoti Bikas Bank topped in terms of number of transactions with 344 transactions.
Similarly, Bank of Kathmandu (Rs 32.50 million), Standard Chartered Bank Nepal (Rs 30.54 million), Nabil Bank (Rs 12.30 million), Prime Commercial Bank (Rs 9.69 million) and Nepal Telecom (Rs 8.32 million) were the top five performers of the week.
Corporate Development Bank’s 2-million units of ordinary shares were listed in the secondary market this week increasing the total number of listed shares.
Source: THT
