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Horsetrading has market down
KATHMANDU, JUL 10 -
A hope of market recovery enthused by the expectation of political stability following the prime minister’s resignation has faded amid wrangling among the political parties.
Nepal Stock Exchange (NEPSE) that had witnessed an increase in its index the previous week went down by 4.63 points to settle at 460.07 points when the market closed for the week. The secondary market had surged by double digit points on July 1, the very next day of the prime minister’s resignation.
Nanda Kishore Mundada, the president
of stockbrokers’ association, told the Post that investors’ confidence fuelled by
expectations of a political recovery had been shattered by political confusion among the parties.”The market will respond to political stability if that happens in the near future,” he said.
However, Rabindra Bhattarai a stock expert, does not believe in political uncertainty as the main reason for the freefall of the stock market. He told the Post that the overflow of shares on the trading
floor was the main reason behind it. “Investors repaying their loans to financers also triggered a fall in the market,” he said.
Although the bench-
mark index of the secondary market went down by
4.63 points, the market turnover increased by 30.09 percent in contrast to the previous week.
Last week, the stock market registered a turnover of Rs. 141.83 million against Rs. 109.06 million in the preceding week. Likewise, 310,990 shares of 109 companies changed hands through 4,147 transactions.
The dismal performance on groups including finance companies, hotels and commercial banks pulled down the stock market. Indices of groups including others sectors, finance companies, hotels, commercial banks and development banks went down shedding 11.75 points, 8.02 points, 5.22 points, 3.09 points and 2.92 points respectively.
Trading companies topped the chart among the sectors that gained, registering a gain of 5.31 points followed by insurance companies and hydropower companies that went up by 1.97 and 1.44 points respectively. However, the index of the manufacturing and processing companies group did not see a change.
Similarly, Standard Chartered Bank topped the chart in terms of total turnover and number of shares traded, accumulating Rs. 22.80 million through the trading of 24,130 shares.
However, shares of Asian Life Insurance Company saw the highest number of transactions i.e. 624, for the third consecutive week. Last week, 3.6 million shares of Prime Life insurance Company were listed on NEPSE.
Posted on: 2010-07-11 09:24
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