Uncertainty pulls share market down

KATHMANDU, JUNE 10: 

The stock market went through violent mood swings as the expectations of investors seesawed regarding the implementation of the Finance Ministry’s agreement to promote the market this entire week –– June 3 to 7. 

The index lost 3.77 points in the week as investors had a difficult time in deciding on whether or not to believe if they would see better days ahead based on the ministry’s agreement. 

Last week, the Finance Ministry had signed a nine-point agreement with investors to boost stock trading. The possibility of the provisions in the agreement materialising got the market riding high but as the week passed on the chance of these agreements being implemented seemed slim and the market turned pessimistic. But at the end of the week the market did recover a few points. 

The market opened at 373.55 points on Sunday morning and the positive vibes of the agreement pushed the index up to 390.99 points. But by Wednesday, the effect could not sustain and the index plunged to 365.54 points, which later rested at 369.78 points.

Nepse witnessed trading worth Rs 301.35 million of 1.2 million unit shares belonging to 109 companies in 7666 transactions which is a 25.55 per cent decline in comparison to last week’s transaction. 

Trading of stock belonging to class ‘A’ companies consisted of 70.09 per cent of total transaction worth Rs 211 million. Sensitive index, which measures the performance of blue chip stocks, went down by 0.79 points. Likewise, float index also went down by 0.14 points to 29.71 points. 

This week financial institutions took the brunt of the volatility. Others and hydropower subgroups were able to gain 14.1 points and 4.1 points. Hotels also saved itself from ending up in the red. Commercial banks, development banks, finance companies and insurance companies lost 8.03 points, 10.79 points, 118 points and 3.11 points, respectively. 

Bank of Kathmandu topped the charts in terms of trading volume and transactions with trading worth Rs 57.4 million in 586 transactions. Narayani National Finance was the forerunner in the number of shares traded with a trading of 372,098 unit shares.

The top five performers of the week were Bank of Kathmandu (Rs 57.40 million), Chilime Hydropower (Rs 27.42 million), Everest Bank (Rs 19.51 million), Nabil Bank (Rs 15.12 million) and Narayani National Finance (Rs 14.36 million).

Source: THT