MONEY»
NEPSE sheds points
KATHMANDU, SEP 04 -
Amid continuous political uncertainty, Nepal Stock Exchange (NEPSE) lost 8.47 points and settled at 420.46 points last week. The market could not retain the growth that it had witnessed the previous week with a gain of 1.59 points.
Experts say the overflow of shares on the trading floor fuelled by the uncertainty in the political and economic scenario hit the secondary market.
After the ending of the last fiscal year, companies are providing bonus shares and increasing the flow of shares in the stock market.
“The return on equity is low compared to the cost of loans for investment in the stock market,” said Birendra Raj Kharel, chief of Pragyan Securities. “That’s why, the investors are compelled to sell the stocks for peanuts.” Stock analyst Jagadish Agrawal, however, blames political problem for the sluggish confidence of investors.
Last week, the fall in the sub-indices of all of the listed sectors, except the sub-index of hotels plunged the share market. The hotels’ group posted a small gain of 1.74 points.
Meanwhile, the double digit fall in the sub-index of development banks led the loser’s side, shedding 23.36 points.
Likewise, the sub-indices of commercial banks, hydropower companies, finance companies and others went down by 8.19 points, 6.89 points, 4.31 points and 3.52 points respectively. Similarly, the sub-indices of trading companies and insurances companies fell by 5.14 points. Last week, shares of 100 companies changed hands from 3,661 transactions in contrast to 91 companies from 2,539 transactions the previous week.
Similarly, the stock market witnessed a turnover of Rs. 102.31 million with the trading of 303,173 shares. The turnover was Rs. 86.55 million with the trading of 210,533 shares the previous week.
The turnover in the secondary market went up by 52.78 percent in the last week.
Prime Life Insurance Company claimed the top spot in terms of highest number of transactions made. The company saw a transaction of 532 last week. The stocks of Standard Chartered Bank realized the total turnover of Rs. 11.73 million to top the chart in terms of turnover.
On the other hand, ICFC Finance Company topped in terms of
the highest number of shares traded with 47,000.
Posted on: 2010-09-05 08:14
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