The Nepal Stock Exchange (Nepse) slid marginally by 5.36 points last week. The market that opened at 811.79 points on Monday fell 11 points on Tuesday.
Although the initial downturn was believed to be an impact of Nepal Rastra Bank’s announcement that it could revise its share purchase loans policy during the monetary policy mid-term review, the benchmark index however went up 10.43 points on Wednesday. The index again fell 4.79 points on Thursday, the last trading day of the week.
“As the daily average turnover in the secondary market is still over Rs 250 million, it shows that the market is still in a growing trend despite the slight downturn in market index,” said Megh Nath Upadhyaya of Primo Securities.
He claimed that the central bank’s measures might not affect the investors as such. “The investors have now realized that the central bank’s step to curb the loan against shares was just to check the misappropriation that some investors could do by showing the share purchase bills in two brokers just to get the loan from the bank.”
Of the nine trading groups, three were losers last week. Amongst them, ‘Others’ observed the biggest fall of 16.44 points. It was followed by development banks and commercial banks. Similarly, four groups that stood in the gainers’ lists included hotels, hydropower companies, insurance companies and finance companies. Achieving 37.38 points, hotels registered as the highest gainers.
Sensitive index which measures the performance of ‘A’ class companies also fell 1.77 points to close at 192.78 points.
Regarding the individual companies, Nepal bank and Chilime Hydropower led in terms of the biggest turnover. Nepal bank’s turnover was accounted at Rs 124.139 million. It was followed by Chilime Hydropower, National Life Insurance, Nepal Life Insurance (promoters’ share) and Nepal Life Insurance (general shares). Likewise, Nabil Balance Fund with holding transactions of 883,301 shares topped in terms of the traded number.
With the fall in Nepse index shares transaction worth also dropped 19.32 percent over the period. It fell to Rs 1.19 billion from Rs 1.47 billion in the previous week. However, the number of traded shares escalated to 3,691,370 units from 3,583,544 units. Upadhyaya expressed his hope that the market could lead to an inclined path in future. “As almost all the market indicators are good and the political situation is also heading in the positive line, there is a possibility that the Nepse index could move in an upward trend.”
Meanwhile, Nepse listed 1,601,127 bonus shares of Everest Bank and 840,000 bonus shares of Citizen’s Investment Trust. Similarly, the secondary market also listed 1,166,000 units of right shares of Gurans Life Insurance Company last week.
source:the kathmandu post,9 march 2014
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Although the initial downturn was believed to be an impact of Nepal Rastra Bank’s announcement that it could revise its share purchase loans policy during the monetary policy mid-term review, the benchmark index however went up 10.43 points on Wednesday. The index again fell 4.79 points on Thursday, the last trading day of the week.
“As the daily average turnover in the secondary market is still over Rs 250 million, it shows that the market is still in a growing trend despite the slight downturn in market index,” said Megh Nath Upadhyaya of Primo Securities.
He claimed that the central bank’s measures might not affect the investors as such. “The investors have now realized that the central bank’s step to curb the loan against shares was just to check the misappropriation that some investors could do by showing the share purchase bills in two brokers just to get the loan from the bank.”
Of the nine trading groups, three were losers last week. Amongst them, ‘Others’ observed the biggest fall of 16.44 points. It was followed by development banks and commercial banks. Similarly, four groups that stood in the gainers’ lists included hotels, hydropower companies, insurance companies and finance companies. Achieving 37.38 points, hotels registered as the highest gainers.
Sensitive index which measures the performance of ‘A’ class companies also fell 1.77 points to close at 192.78 points.
Regarding the individual companies, Nepal bank and Chilime Hydropower led in terms of the biggest turnover. Nepal bank’s turnover was accounted at Rs 124.139 million. It was followed by Chilime Hydropower, National Life Insurance, Nepal Life Insurance (promoters’ share) and Nepal Life Insurance (general shares). Likewise, Nabil Balance Fund with holding transactions of 883,301 shares topped in terms of the traded number.
With the fall in Nepse index shares transaction worth also dropped 19.32 percent over the period. It fell to Rs 1.19 billion from Rs 1.47 billion in the previous week. However, the number of traded shares escalated to 3,691,370 units from 3,583,544 units. Upadhyaya expressed his hope that the market could lead to an inclined path in future. “As almost all the market indicators are good and the political situation is also heading in the positive line, there is a possibility that the Nepse index could move in an upward trend.”
Meanwhile, Nepse listed 1,601,127 bonus shares of Everest Bank and 840,000 bonus shares of Citizen’s Investment Trust. Similarly, the secondary market also listed 1,166,000 units of right shares of Gurans Life Insurance Company last week.
source:the kathmandu post,9 march 2014
LINK
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