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NEPSE’s FY hits bad note
KATHMANDU, JUL 18 -
Nepal Stock Exchange (NEPSE) began the new fiscal year on a dismal note on Sunday.
The secondary market dropped 9.2 points when the market closed for the day. Except for the hotel groups’ index; a fall in the indices of all other groups listed in NEPSE led the secondary market to come down to 468.53 points.
According to stock experts, the secondary market, which had surged on the last trading day of the last fiscal year, could not sustain the unexpected growth. They attributed this to the fact that the upswing mode last Thursday was due to investors’ desire to see an increase in the NEPSE index to avoid margin calls from financing banks. The market had witnessed a double digit growth of 10.4 points on Thursday.
N. K. Mundada, president of Nepal Stock Brokers’ Association, said investors’ tendency to sell their stocks as a reaction to Thursday’s upsurge exceeded the actual demand, resulting in the tumble of the secondary market on Sunday.
Birendra Raj Kharel, chief of Pragyan Securitites, echoed Mundada’s words and ssaid the market could have sustained the growth if Thursday’s growth was a “real one.” The index of commercial banks’ group led the loser’s list, as it went down by 15.66 points. Hydropower groups and others witnessing a decline of 2.84 points and 2.35 points respectively followed the commercial banks’ group.
Similarly, groups including development banks and finance companies equally shed 0.94 point on Sunday. However, the hotels’ group did not see a change in its index.
Among the 54 companies on the trading floor, share prices of 12 companies went up while those of eight companies remained constant.
The 34 companies pulled the secondary market to the red zone.
The stock market witnessed a transaction of Rs 13.19 million through trading of 43,042 shares in 580 transactions.
Unlike on Thursday, shares of Standard Chartered Bank suffered the most, losing Rs 326 per share, while Rastriya Beema Sansthan posted the highest gain with Rs 29 per share.
Posted on: 2010-07-19 08:27
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