E-Kantipur

KATHMANDU, OCT 30 -

The Nepal Stock Exchange (Nepse) last week posted a slight growth of 1.57 points to close at 327.99 points on Tuesday. The market had opened at 326.42 points on Sunday.

Although the market index registered gains on each of the last week’s three transaction days, none of the sub indices saw a significant moment. Groups representing development banks, insurance companies and hotels grew by 0.59, 2.66 and 0.76 points, respectively, while commercial banks, hydropower companies, finance companies, and dropped 0.23, 3.11, 0.28 and 4.7 points, respectively. Manufacturing industries and trading sector saw no change in their indices.

Poor performance of the market can be linked with the sluggish economic activities during the festive season. However, experts say that the stock market is stable and expect it to move forward in a positive direction. “We can say that the market is stable because the range of fluctuation in Nepse index is very low,” said Anjan Raj Poudyal, president of Stock Brokers’ Association Nepal. “Despite low weekly turnover due less number of workdays, it is seen that the daily turnover is increasing. This will boost investors’ confidence.”

He added that with the appointment of a new chief at Securities Board of Nepal, the central depositary system is expected to come into operation soon, positively affecting the market.

The stagnancy in Nepse was reflected in its market capitalisation. It appreciated to mere Rs 299.96 billion last week from Rs 299.50 billion in the previous week.

The transaction amount decreased significantly with the downfall of a whopping 55.36 percent. It decreased to Rs 84.12 million last week from Rs 188.45 million in the previous week.

National Hydropower Company topped the chart in terms of transaction amount with a turnover of Rs 10.56 million. Guras Life Insurance topped in terms of the number of transactions (691).

Top five companies in terms of turnover (in Rs million)

Companies    Turnover

Chilime Hydropower Company    10.56

Nepal Investment Bank    9.49

Himalayan Distillery    7.37

Nepal Bangladesh Bank    6.77

Kist Bank    5.60

Total Turnover

Oct   20 - Rs 188.45 million

Oct   25 - Rs 84.12 million

Market Capitalisation   

Oct   20 - Rs 299.50 billion

Oct   25 - Rs 299.96 billion

No of Shares   

Oct   20 - 15,33,782

Oct   25 -  4,60,344

Posted on: 2011-10-30 09:19

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