E-Kantipur

KATHMANDU, NOV 13 -

The Nepal Stock Exchange (Nepse) lost 6.14 points last week to close at 331.78 points on Thursday from Sunday’s 337.91 points.

The market index dropped points on each of the four transaction days. Apart from hotels and insurance companies’, all the sub indices posted negative growth.

Groups representing commercial banks, others, hydropower companies, finance companies and development bank shed 9.18, 4.70, 3.40, 1.18 and 2.86 points, respectively.

While hotels and insurance companies gained 3.58 and 5.08 points, respectively, manufacturing industries and trading sector saw no change in their indices. 

Despite all these figures, experts say the market is absolutely normal. “Sometimes, fluctuation is seen in the number of shares traded due to bulk trading,” said Anjan Raj Poudyal, president of Stock Brokers’ Association Nepal, “Besides, everything is pretty stable.”

What is being witnessed over last four months is that there has not been drastic upheaval in the stock market, thanks to some positive measures taken by the government and the Nepal Rastra Bank. The government reducing the capital gain tax and the Nepal Rastra Bank allowing banks and financial institutions to decide on margin lending are some of the measures by the government to revive the stock market. However, Poudyal said without the installation of infrastructures like central depositary system (CDS) and clearing house, the market will not improve.

Currently, Securities Board of Nepal in the process of approving the bylaws for the operation of CDS. 

Poudyal also pointed out the importance of new investors in the market in order to increase the turnover which will make the market more vibrant.

Last week, the transaction amount in Nepse increased slightly by 5.86 percent to Rs 125.16 million from Rs 118.23 million in the previous week.  

Himalayan Distillery Company topped the chart in terms of transaction amount and the number of shares traded. The company realised Rs 21.72 million from the transaction of 217,480 shares. Guras Life Insurance posted the highest number of share transactions of 1,242.

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

Himalayan Distillery                        21.72

Bank of Kathmandu                          9.01

Standard Chartered Bank                  5.99

Guras Life Insurance Company        5.81

Chilime Hydropower Company         5.28

Posted on: 2011-11-13 10:32

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