The failure of share prices to pick itself up made investors a bit wary causing the transaction volume at the stock exchange to decline this week —December 29 to January 2.
The benchmark index dropped by 23.6 points, that is 2.9 per cent, on the week’s trading, coming back to rest at 763.47 points by the end of the week.
Since past week, stock prices have headed for correction after reaching 800 points. Profit booking by investors while prices were high started to pull down the prices. Furthermore, the central bank jacked up its monitoring of loans against shares following the rally, which also spooked investors about possible tightening of margin type financing, leading to ‘sell’ orders. The constant fall of index has made investors hesitant to invest in shares.
The market opened at 787.07 points on Sunday afternoon, which slipped to 779.50 points by the time of closing.
The index kept sliding, reaching 754.09 points by Wednesday. However, the consequent fall in share prices attracted ‘buying’, which pushed the index to 763.47 points on the last trading day of the week.
This week, the turnover did not cross the Rs two billion mark following the slump in share prices and the transaction volume declined by 36 per cent. Nepal Stock Exchange (Nepse)’s floor witnessed trading of 4.5 million unit shares worth Rs 1.45 billion of 125 companies in 11,093 transactions. Last week, the stock market saw trading of 5.37 million unit shares worth Rs 2.72 billion.
Share trading of blue chip stocks belonging to class ‘A’
companies comprised 48.68 per cent of total transaction, amounting to Rs 706 million. The sensitive index that shows the performance of class ‘A’ stocks declined by 5.96 points. Likewise, the float index that measures the performance of shares actually traded also went down by 1.21 points to 51.08 points.
This week all the subgroups ended up in the red. Hydropower and insurance subgroups were the biggest losers of the week. Hydropower companies like Chilime Hydropower and Butwal Power Company lost Rs 106 and Rs 60 per unit, respectively, pulling the subgroup index down by 99.96 points.
The insurance subgroup also went down by 95 points as Nepal Life Insurance, National Life and Shikhar Insurance lost Rs 200,
Rs 45 and Rs 57 per unit share,
respectively, among others.
Banks such as Nabil Bank and Standard Chartered Bank lost Rs 153 and Rs 85 per unit, respectively, among others, and the banking subgroup slumped by 26.01 points. Likewise, Nepal Telecom’s share price slumped by Rs 12 bringing the others subgroup down by 14.19 points. Finance companies, development banks and hotels also recorded losses of 2.84 points, 8.35 points and 11.3 points, respectively.
This week, Nepal Bangladesh Bank topped the charts in terms of transaction volume with trading worth Rs 132.7 million. Nabil Balanced Fund I was the forerunner in terms of number of shares traded with trading of 392,542 units. In number of transactions, Mega Bank Nepal was the forerunner with 948 transactions.
The top five companies this week in terms of transaction volume were Nepal Bangladesh Bank (Rs 132.7 million), Nepal Bank (Rs 90.3 million), Kist Bank (Rs 82.5 million), Arun Valley Hydropower Company (Rs 77.4 million) and Chilime Hydropower (Rs 59.8 million).
This week, 2.3 million units of bonus shares of Bank of Kathmandu and 1.01 million units of rights shares of Life Insurance Corporation (Nepal) were listed at the stock exchange for trading.
source: the himalayan times,4 Jan 2014
LINK
The benchmark index dropped by 23.6 points, that is 2.9 per cent, on the week’s trading, coming back to rest at 763.47 points by the end of the week.
Since past week, stock prices have headed for correction after reaching 800 points. Profit booking by investors while prices were high started to pull down the prices. Furthermore, the central bank jacked up its monitoring of loans against shares following the rally, which also spooked investors about possible tightening of margin type financing, leading to ‘sell’ orders. The constant fall of index has made investors hesitant to invest in shares.
The market opened at 787.07 points on Sunday afternoon, which slipped to 779.50 points by the time of closing.
The index kept sliding, reaching 754.09 points by Wednesday. However, the consequent fall in share prices attracted ‘buying’, which pushed the index to 763.47 points on the last trading day of the week.
This week, the turnover did not cross the Rs two billion mark following the slump in share prices and the transaction volume declined by 36 per cent. Nepal Stock Exchange (Nepse)’s floor witnessed trading of 4.5 million unit shares worth Rs 1.45 billion of 125 companies in 11,093 transactions. Last week, the stock market saw trading of 5.37 million unit shares worth Rs 2.72 billion.
Share trading of blue chip stocks belonging to class ‘A’
companies comprised 48.68 per cent of total transaction, amounting to Rs 706 million. The sensitive index that shows the performance of class ‘A’ stocks declined by 5.96 points. Likewise, the float index that measures the performance of shares actually traded also went down by 1.21 points to 51.08 points.
This week all the subgroups ended up in the red. Hydropower and insurance subgroups were the biggest losers of the week. Hydropower companies like Chilime Hydropower and Butwal Power Company lost Rs 106 and Rs 60 per unit, respectively, pulling the subgroup index down by 99.96 points.
The insurance subgroup also went down by 95 points as Nepal Life Insurance, National Life and Shikhar Insurance lost Rs 200,
Rs 45 and Rs 57 per unit share,
respectively, among others.
Banks such as Nabil Bank and Standard Chartered Bank lost Rs 153 and Rs 85 per unit, respectively, among others, and the banking subgroup slumped by 26.01 points. Likewise, Nepal Telecom’s share price slumped by Rs 12 bringing the others subgroup down by 14.19 points. Finance companies, development banks and hotels also recorded losses of 2.84 points, 8.35 points and 11.3 points, respectively.
This week, Nepal Bangladesh Bank topped the charts in terms of transaction volume with trading worth Rs 132.7 million. Nabil Balanced Fund I was the forerunner in terms of number of shares traded with trading of 392,542 units. In number of transactions, Mega Bank Nepal was the forerunner with 948 transactions.
The top five companies this week in terms of transaction volume were Nepal Bangladesh Bank (Rs 132.7 million), Nepal Bank (Rs 90.3 million), Kist Bank (Rs 82.5 million), Arun Valley Hydropower Company (Rs 77.4 million) and Chilime Hydropower (Rs 59.8 million).
This week, 2.3 million units of bonus shares of Bank of Kathmandu and 1.01 million units of rights shares of Life Insurance Corporation (Nepal) were listed at the stock exchange for trading.
source: the himalayan times,4 Jan 2014
LINK
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