Those with less funds to invest picking up such shares
As investors are fishing for cheap stocks to invest in during the ongoing bull-run, share prices of some two dozen listed companies have started to climb their way back above their face value.
The 22 companies, among the 53 companies at the stock exchange, whose share price was below face value, have recorded substantial gains in their share prices since the beginning of the current fiscal year. Moreover, share prices of 10 companies — development banks and finance companies — have soared above Rs 100 — the face value.
Among the rest of the listed companies with share prices below Rs 100, Nepse has suspended the trading of 18 financial institutions due to their ongoing merger process. The remaining 13 companies — belonging to manufacturing and trading subgroups — are not actively traded at the stock exchange and are undergoing suspension for not paying the annual listing fee since the last couple of years.
“Since the market is bullish right now, stock prices of all types of companies have gone up,” pointed out president of Stock Brokers Association of Nepal Narendra Raj Sijapati.
These cheap stocks that are trading below their face value — the nominal price of the stocks — are best suited for investors looking to make a quick buck during the bullish trend. The stock index has jumped by 40 per cent since mid-July to early December, making shares a lucrative investment instrument once again.
“Investors with less funds to invest but hoping to earn some money during the current rally are picking up these cheap stocks,” said Sijapati.
“Moreover, share prices of companies whose outlook is okay in the future are rising pretty fast,” he added.
The share price of Infrastructure Development Bank has increased by 62 per cent. The
shares of the development bank which were traded at Rs 62 at the end of last fiscal year, has reached Rs 101 as of yesterday.
Likewise, the share price of Supreme Development Bank and Professional Bikas Bank has registered a near 50 per cent jump, that pushed them above the face value.
Likewise, share prices of development banks such as Tourism Development Bank and Gaurishankar Development Bank that are performing well and also giving returns to investors have reached the level of some commercial banks — above Rs 135. Commercial banks such as Kist Bank and Civil Bank are being traded below Rs 140. Among firms with share prices still below value are
15 finance companies, 13 development banks, and 11 manufacturing firms, two trading firms, one hydropower and one film company.
Source: The Himalayan Times, 6 Dec 2013
As investors are fishing for cheap stocks to invest in during the ongoing bull-run, share prices of some two dozen listed companies have started to climb their way back above their face value.
The 22 companies, among the 53 companies at the stock exchange, whose share price was below face value, have recorded substantial gains in their share prices since the beginning of the current fiscal year. Moreover, share prices of 10 companies — development banks and finance companies — have soared above Rs 100 — the face value.
Among the rest of the listed companies with share prices below Rs 100, Nepse has suspended the trading of 18 financial institutions due to their ongoing merger process. The remaining 13 companies — belonging to manufacturing and trading subgroups — are not actively traded at the stock exchange and are undergoing suspension for not paying the annual listing fee since the last couple of years.
“Since the market is bullish right now, stock prices of all types of companies have gone up,” pointed out president of Stock Brokers Association of Nepal Narendra Raj Sijapati.
These cheap stocks that are trading below their face value — the nominal price of the stocks — are best suited for investors looking to make a quick buck during the bullish trend. The stock index has jumped by 40 per cent since mid-July to early December, making shares a lucrative investment instrument once again.
“Investors with less funds to invest but hoping to earn some money during the current rally are picking up these cheap stocks,” said Sijapati.
“Moreover, share prices of companies whose outlook is okay in the future are rising pretty fast,” he added.
The share price of Infrastructure Development Bank has increased by 62 per cent. The
shares of the development bank which were traded at Rs 62 at the end of last fiscal year, has reached Rs 101 as of yesterday.
Likewise, the share price of Supreme Development Bank and Professional Bikas Bank has registered a near 50 per cent jump, that pushed them above the face value.
Likewise, share prices of development banks such as Tourism Development Bank and Gaurishankar Development Bank that are performing well and also giving returns to investors have reached the level of some commercial banks — above Rs 135. Commercial banks such as Kist Bank and Civil Bank are being traded below Rs 140. Among firms with share prices still below value are
15 finance companies, 13 development banks, and 11 manufacturing firms, two trading firms, one hydropower and one film company.
Source: The Himalayan Times, 6 Dec 2013
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