E-Kantipur

KATHMANDU, NOV 27 -

After witnessing a huge turnover in the previous week due to good sale of promoter shares, Nepal Stock Exchange (Nepse), the only capital market of the country, remained silent this week as transactions went on as usual.

The turnover came down to Rs 139.71 million, a downfall by 59.77 percent

compared to Rs 347.33 million in the previous week.

The market index also went down by 3.69 points to 324.54 points over the period. A slight fluctuation in the market index has been the trend in the past few weeks. The Nepse index is range bound within 320 to 350 marks for the past few weeks.

During the five transaction days in the week, the market index witnessed a slight growth on the second day and slight downfall on all the other trading days.

The group representing commercial banks, others, hydropower companies, insurance companies and development banks registered a decline of 2.71, 10.57, 16.24, 3.27 and 2.18 points respectively. Similarly, groups representing the manufacturing sector, hotels and finance witnessed a growth of 6.25, 1.51 and 0.32 points respectively. The trading sector group saw no change in its index.

Stock analysts say that the delay in the operation of infrastructure like central depository system, lack of cheap capital and new investors in the market is affecting the capital market. “Without addressing the aforementioned issues, the capital market .will continue to remain stagnant,” said Anjan Raj Poudyal, the president of Stock Brokers’ Association Nepal. “Investors are currently reluctant to make investment and are in a wait-and-watch mode.”

As the commercial banks witnessed a decline in their net profit, investors are expected to be cautious. A majority of the banks saw their profits go down in the first quarter this year.

The slowdown in Nepse was reflected on the market capitalisation of the capital market which declined to Rs 297.66 billion on the last trading day last week, from Rs 301.23 billion on the last trading day of the previous week.

Himalayan Distillery topped the chart in terms of transaction amount and the number of shares traded with a turnover of Rs 20.39 million and 202,465 shares traded in the exchange. Likewise, Muktinath Bikas Bank topped in terms of the number of transactions with the insurance company witnessing 1,425 transactions.

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

Himalayan Distillery    20.39

Tara Gaon Regency Hotel    12.47

Bank of Kathmandu    10.21

Muktinath Bikas Bank    8.38

Chilime Hydropower Company    7.81

Posted on: 2011-11-27 08:42

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