E-Kantipur

KATHMANDU, DEC 25 -

The stock market last week too continued lacklustre trading, with the Nepal Stock Exchange (Nepse) index dropping 0.74 points. The market index closed at 312.68 points on Thursday from Sunday’s 313.68 points.

Over the last week’s five transaction days, the market index witnessed a marginal decline on the second day, a slight growth on the third, and again a minor loss on the fourth and fifth days. Groups representing commercial banks, others, finance companies and development banks shed 0.33, 1.17, 2.35 and 1.34 points, respectively, while hotels, hydropower companies and insurance companies gained 0.56, 2.20 and 4.91 points, respectively. Manufacturing industries and trading sector saw no change in their indices.

The decline in the Nepse index was largely influenced by market heavyweight banks and financial institution. Given commercial banks recording a slump in their profits and the regulator barring insurance companies from distributing dividends, investors are in wait and see mode.

According to stock analysts, the market will continue the present trend for some more time. “The capital market was expecting the setting up of the central depositary system, decline in bank rates and new investors, all of which are yet to be fulfilled,” said stockbroker Nanda Kishore Mundara. “Therefore, the current stagnancy will continue until the aforementioned requirements are fulfilled.”

Mundara even expected further decline in the market index after BFIs disclose their financial statements of the second quarter. The slump in the realty sector is expected to hit BFIs’ profits hard. Last week, Nepse’s market capitalisation declined to Rs 288.43 billion from previous week’s Rs 290.34 billion. Despite the fall in the market capitalisation and market index, the turnover recorded 17.5 percent gain to reach Rs 170.57 million from previous week’s Rs 145.12 million. 

A significant portion of the turnover was due to the listing and trading of new shares of Chilime Hydropower Company. The company alone witnessed trading of a whooping Rs 86.49 million—last week’s highest by a company—accounting for over 50 percent of the total market turnover. Chilime also recorded the highest number transactions with 5,127. Progressive Finance Company topped the chart in terms of the number of shares traded with 142,480.

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

Chilime Hydropower Company    86.49

Progressive Finance    13.96

Bank of Kathmandu    11.04

NMB Bank    8.46    Everest Bank    3.28

Posted on: 2011-12-25 09:41

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