E-Kantipur

KATHMANDU, DEC 18 -

Nepal Stock Exchange (Nepse), the only capital market of the country, lost 1.42 points last week to settle at 316.27 points on Thursday from Sunday’s 317.69 points.

Over the last week’s five transaction days, the market index witnessed a marginal fall on the second, third days, a slight growth on the fourth and again a slight plunge on the fifth day.  Groups representing commercial banks, hydropower companies, insurance companies and development banks shed 1.21, 9.51, 4.38 and 4.50 points, respectively, while manufacturing industries, hotels and finance companies gained 6.12, 0.39, 0.21 points, respectively. Others and trading sector saw no change in their indices.

The groups representing commercial banks and development banks and insurance companies played a key role in the market index decline. Given commercial banks witnessing decline in their net profits and the regulator barring insurance companies to distribute dividends, it is obvious for investors to be cautious while making investments.

According to stock analysts, delay in bringing into operation infrastructure like central depositary system (CDS), lack of cheap capital and new investors in the market is holding back the market recovery. “Also the listed companies are not performing well in terms of profit generation,” said Anjan Raj Poudyal, president, Stock Brokers’ Association Nepal. “Investors are willing to release their holding and we are feeling a little bit of selling pressure.” Poudyal added the future course can be predicted only after observing the market for some more time, i.e., the end of the second quarter. Last week, Nepse’s market capitalisation declined to Rs 290.34 billion from previous week’s Rs 293.72 billion. Also, the turnover went down by 34.2 percent to Rs 145.12 million compared to Rs 220.67 million in the previous week.

The listing and trading of the new shares of Chilime Hydropower Company significantly contributed to the market turnover. The company realised a turnover of Rs 44.07 million—last week’s highest. It also posted the highest number of transactions (3615).

NMB bank took the pole position in terms of the number of shares traded with 102,525 units.

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

Chilime Hydropower Company    44.07

Bank of Kathmandu    16.27

NMB Bank    15.99

Standard Chartered Bank     5.71

NABIL Bank    4.53

Posted on: 2011-12-18 09:29

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