E-Kantipur

KATHMANDU, MAR 07 - Optimism is high among investors after striking a deal with the government over margin lending (loan against shares) and other issues. This is reflected in the sudden boost in the stock market last week after a prolonged slowdown.

The market gained 16.18 points when it crossed benchmark of 500 points to reach 514.04 points on Thursday from 497.86 points in the opening day on Monday after a week-long strike. The market crossed the benchmark of 500 points on second day of trading on Tuesday with 503.12 points for the first time after a month long downfall below that level.

Earlier as Nepal Stock Exchange (NEPSE) index continued to drop, helpless investors started an agitation demanding ease in margin lending and other measures related to taxes and infrastructure.

President of Nepal Stockbrokers' Association, Nanda Kishore Mundada is sceptical about the sustainability of growth. "The latest boost in the market is a result of the end of the strike after an agreement was reached with the government," he said. "There is no role of fundamental factor in it."

Despite gains for three days continuously, the market lost 2.96 points on Thursday leaving a question mark on the sustainability of the latest rise in the capital market.

On the final day of trading for the week, share prices of most companies went down although the price of Nepal Telecom went up to Rs. 533 per share from Rs. 515 the previous day.

According to Mundada, the sudden surge in the number of investors, right after the agreement between the investors and the government thinned out after two days.

The shares of 89 companies were traded last week. A total of 4,195 shares worth Rs. 210.58 million were traded through 610,100 shares. The trading of 'A' class companies occupied 53.64 percent of total value of shares traded that stood at Rs. 112.9 million.

Standard Charted Bank, NCM Mutual Fund and Vibor Bikas Bank topped in terms of turnover, number of shares traded and number of transactions respectively.

Weekly review

Top Five in turnover

Company     Turnover (in  Rs. million)

Standard Charted Bank    33.94   

DCBL Bank     27.84

Nabil Bank     16.79

Bank of Kathmandu      13.26

Vibor Bikas Bank    11.02

Date           Nepse Index (in points)

01/02/10        497.86

02/02/10        503.12

03/02/10        517.00

04/02/10        514.04

Sector/s that went UP

Others        50.51

Commercial Banks        12.61

Development Banks        10.56

Finance companies         2.22

Sector/s that went down

Hydropower         9.20

Trading         4.28

Insurance companies        1.44

Hotels        0.57

Posted on: 2010-03-07 09:04

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