E-Kantipur

KATHMANDU, DEC 04 -

The Nepal Stock Exchange (Nepse) last week dropped 1.79 points to close at 322.84 points on Thursday. The market had opened at 324.63 points on Sunday.

The Nepse index currently is range-bound for the last few weeks, hovering between 320 and 350 points. Over the last week’s five transaction days, the market index witnessed a marginal growth on the third day and fell on all other days.

Groups representing commercial banks, hydropower companies, insurance companies, finance companies and development banks shed 2.39, 6.51, 5.74, 1.10 and 2.76 points, respectively, while hotels and others gained 7.92 and 1.17 points, respectively. Manufacturing and trading sector, meanwhile, saw no change in their indices.

As always, heavyweights, banks and financial institutions (BFIs), were the ones that dragged the market down. As a majority of commercial banks posted fall in their profits in the first quarter, investors seem to have been cautious in purchasing their shares.

Analysts say the delay in brining into operation infrastructure like central depositary system (CDS) and lack of cheap capital and new investors is hindering the market recovery. Nepse will continue the current trend until it is facilitated

with these measures, said Anjan Raj Poudyal, president of Stock Brokers’ Association Nepal.

“CDS is yet to get it bylaws approved from the Securities Board of Nepal (Sebon) to start a full-fledged operation,” said Poudyal. “On the other hand, despite the liquidity flush, banks haven’t reduced interest rates significantly.”

Last week, Nepse’s market capitalisation declined to Rs 296.10 billion from Rs 297.66 billion a week ago.

Despite the downfall in market capitalisation and index, Nepse’s turnover went up to Rs 160.80 million—up by 15.09 percent compared to Rs 139.71 million in the previous week. Chilime Hydropower Company alone witnessed trading of Rs 59.38 million, posting the highest turnover. The company also recorded the highest number of transactions, with its shares changing hands 3247 times.

Muktinath Bikas Bank, meanwhile, topped in terms of the number of shares traded (78,490).

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

Chilime Hydropower Company    59.38

Bank of Kathmandu    25.28

Muktinath Bikas Bank    12.63

Everest Bank    6.82

Standard Chartered Bank    5.92

Posted on: 2011-12-04 09:52

Post Your Comment

Please note that all the fields marked * are mandatory.
* Full Name
* Address
* Email Address
* Comment
* Captcha	Get another CAPTCHA code
Note:	Comments containing abusive words or slander shall not be published.