New Year rush brings NEPSE up 18.82pts

- RAJESH KHANAL, Kathmandu

Apr 14, 2019-

Nepal Stock Exchange last week increased by 18.82 points to close at 1,184.02 points after investors rushed to purchase stocks, citing the possibility that the market could expand in the fourth quarter of the current fiscal year.  

With the market charting upwards, the average daily turnover also increased to Rs598.58 million from Rs417.92 million.

The secondary market that opened at 1,165.2 points on Sunday escalated 17.16 points to close at 1,182.36 points. On Monday too, the market index grew by 9.32 points before plunging 10.58 points on Tuesday.

On Wednesday, Nepal Stock Exchange (NEPSE) index added 3.51 points followed by a marginal drop of 0.59 points on Thursday. The market grew 1.61 percent during the review period.

Stock analysts attributed the rise in NEPSE to the arriving end of the current fiscal year. “Most of the investors believe that there will be an ease in liquidity with the banks as the government offices typically speed up public spending with the arriving fiscal year end,” said a stockbroker under condition of maintaining anonymity. “Similarly, the investors might have been lured by the possibility that listed companies will announce fresh dividend at the start of the new fiscal year.”  

The sensitive index that measures the performance of blue chips companies also inclined 5.07 points to close at 253.64 points after majority of trading groups posted notable gain in their indices.  

During the review period, investors gained Rs38.42 billion from higher share prices, as the market capitalisation increased to Rs1,462.50 billion from Rs1,424.08 billion.

Of the 11 trading groups, only six picked up points. The biggest gainer was Life-insurance, which was up 106.34 points to close at 5,991.53 points. It was followed by non-life insurance that added 77.86 points in its index.

Similarly, commercial banks gained 27.32 points, microfinance companies expanded by 22.83 points while development banks and finance companies posted gains of 17.9 points and 2.22 points respectively.

Of the four losers, manufacturing index shed the most, shrinking by 70.61 points. It was followed by hydropower index which shed 14.01 points. Hotels and ‘others’ fell by 4.67 points and 2.34 points respectivelyThe market index of trading was stable at 244.9 points throughout the review period.

Regarding the individual companies’ trading amount, NIC Asia Bank secured pole position after recording transaction of its stocks worth Rs252.18 million. NMB Bank, Kumari Bank, Neco Insurance Company and Nepal Bank Limited were among the top five companies.  

Last week, stocks worth Rs2.99 billion were transacted which was 43.75 percent more compared to the transaction amount in the previous week. The total number of traded shares also went up to 10,491,374 units from 7,908,145 units.

NEPSE listed 38,873,180.33 units of ordinary shares of nine companies over the weekdays.

Published: 14-04-2019 09:19

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