Stock market up 2.27 points on profit booking, investors gain Rs 2.81 billion

- RAJESH KHANAL, Kathmandu

May 5, 2019-

Nepal Stock Exchange last week increased by a marginal 2.27 points to close at 1,294.39 points, after  the initial wave of investors rushing to book profits from soaring stock prices receded from the previous weeks.

Along with the market index, the average daily turnover also increased slightly to Rs1.10 billion in the last week from Rs1 billion in the previous week.

The secondary market opened at 1,292.12 points on Sunday and gained 22.39 points to close at 1,314.51 points. However, over the remaining trading period, the market index landed in the red.

On Monday, the market fell by 4.2 points, followed by a decline of 11.71 points on Tuesday. The market was closed on Wednesday to celebrate Labour Day. On the final trading day, the market continued its bearish trend with a loss of 4.21 points.

 Overall, the market increased marginally by 0.17 percent over the review period.

Stock analysts termed the slight rise in NEPSE index as market correction.

However, a number of investors did not share the same sentiment. They suspect foul play in the large fluctuation at the stock market.

 “Couple of big investors seem to be manipulating the market to receive undue benefit out of the stocks transaction,” said an investor who wished to remain anonymous.

“It seems suspicious that growth was focused in different segments over the review period, beginning from commercial bank to hydropower and ending with insurance companies.”

The sensitive index that measures the performance of blue chips companies declined by 1.85 points to close at 277.82 points after the heavy fall in the stock prices of majority of the commercial banks, which holds major shares in terms of market capitalisation.  

With an increase in share prices, investors gained Rs2.81 billion from the transaction, as the market capitalisation increased to Rs1,603.86 billion from Rs1,601.05 billion.

Other than the sub-groups of banks and financial sectors, investors who had injected their money in the remaining eight trading groups rejoiced as their stock portfolio posted gains.

Life-insurance gained the largest of 539.61 points to close at 6,868.95 points. It was followed by non-life insurance that added 192.6 points in its index.

Similarly, hydropower gained 102.06 points, manufacturing gained 88.85 points, hotels gained 86.54 points and microfinance gained 60.49 points. ‘Others’ and trading gained 0.71 points and 0.68 points respectively.

Commercial banks, development banks and finance companies were among the losers. Index of commercial banks dipped 33.41 points while those of development banks and finance companies went down by 21.34 points and 6.17 points respectively.

Regarding the individual companies’ trading amount, Nepal Bank Limited with holding transaction of its stocks worth Rs485.27 million topped the group. It was followed by Nepal Life Insurance, Chhimek Laghubitta Bikas Bank, Prime Commercial Bank and NMB Bank Limited.  

Last week, stocks worth Rs4.41 billion were traded which was 11.76 percent less than the amount in the previous week. The total number of traded shares also fell to 12,707,948 units from 16,366,581 units.

NEPSE listed 11,891,098.89 units of ordinary shares of four companies over the review period.



Right Shares/Bonus Shares

Company    Type    Units

Sammit Laghubittiya Bittiya Sanstha    Bonus    400,000

Swabalamban Laghubittiya Bittiya Sanstha    Bonus    1,257,777

Tinau Bikas Bank    Bonus    608,321.89

Pachthar Power Company    IPO    9,625,000

Published: 05-05-2019 08:40

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