Stock market still at low ebb

KATHMANDU, FEB 26 -

Despite the encouraging measures taken by the regulator and other government agencies, the capital market continued to remain at low ebb.

The Nepal Stock Exchange (Nepse) index settled at 312.59 points last Thursday, gaining a meagre 0.73 points from the opening day’s 311.86 points—this year’s lowest.

The government, through its recent action plan on economic development, had announced measures to revive the market, but failed to cheer investors. Three public holidays last week further marred trading on the exchange.

Last week, none of the sub indices recorded major changes. Groups representing hotels, hydropower companies, insurance companies, finance companies and development banks shed 1.13, 1.30, 0.96, 0.47 and 0.49 points, respectively. Commercial banks and others rose by 0.47 and 4.70 points, respectively, while manufacturing and trading companies were the non-movers.

Anjan Raj Poudyal, president of the Stock Brokers’ Association of Nepal, said the market would continue the trend for some more time. “This is not a worrisome situation,” said Poudyal. “There is enough liquidity in the financial system and interest rates on deposits have already come down. If banks and financial institutions reduce lending rates too, the excess liquidity will flow towards capital market.”

The stagnancy in the market index was reflected on Nepse’s

market capitalisation that settled at Rs 290.88 billion last week.

As trading was possible for only two days, the overall market turnover

was pretty low. The turnover fell by 69.14 percent to Rs 30.69 million from the previous week’s Rs 99.46 million.

Nepal Doorsanchar Company topped the charts in terms of both the turnover and the number of shares traded as the company realised Rs 5.49 million from the trading of its 12,335 shares.

Professional Bikas Bank posted the highest number of transactions with its shares changing hands 189 times.

Source: Kantipur