Traders worried about the Nepal Rastra Bank (NRB)’s recent directive continued to offload shares, causing the Nepal Stock Exchange (Nepse) index to take a massive drop of 37.61 points, or 3.82 per cent, during the day to rest at 947.84 points. Because of the decline, the stock market operator had to halt trading twice, for 15 minutes and 30 minutes, as the index dropped by four per cent to as low as 946.03 points in the second trading hour of the day.
Stockbrokers said that investors became cautious after the central bank issued a circular allowing commercial banks and financial institutions to invest only one per cent of total paid-up capital into shares.
“Stock brokers might have taken the central bank’s message to the commercial banks and financial institutions into consideration,” said Shreejesh Ghimire, CEO of NMB Capital, explaining the drop.
The sensitive index dropped 7.75 points to 203.54 points and float index rested at 66.66 points, losing 2.83 points from the previous close.
“Sectoral correction is not unusual. But today’s decline in the overall secondary market was quite alarming,” said Pravin Raman Parajuli, CEO of Nabil Investment.
Banking subgroup that holds the largest share of the total market capital in Nepse contracted 36.7 points to rest at 869.83 points. The hydropower subgroup plunged 152.39 points and insurance fell 237.72 points to rest at 2,350.39 points and 3,710.07 points, respectively.
Likewise, development banks lost 22.4 points to settle at 685.23 points and finance lost 7.4 points to 509 points. The others subgroup slid 5.87 points to 740.15 points. Likewise, hotels subgroup fell to 1,860.18 points, losing 9.63 points from the previous close.
Manufacturing, the only subgroup in the green, gained 0.83 points to rest at 1,193.63.
Insurance companies and development banks were the top five losers for the day. Life Insurance Company declined 9.97 per cent to Rs 3,322, Asian Life Insurance slid 9.56 per cent to Rs 927 and Prime Life Insurance fell 9.28 per cent to Rs 821. Likewise, Reliable Development Bank lost 9.4 per cent to Rs 212 and Miteri Development Bank lost 9.2 per cent to Rs 454.
Meanwhile, three finance companies and two development banks stood as the top five gainers for the day. Paschimanchal Finance climbed 9.61 per cent to Rs 251, Multipurpose Finance surged 9.32 per cent to Rs 129 and Manjushree Finance jumped 3.7 per cent to Rs 140. Nagbeli Laghubitta Bikas Bank surged 9.98 per cent to Rs 1,025 and Birta Laxmi Bikas Bank gained 8.93 per cent to rest at Rs 244.
In terms of turnover, the top five companies of the day were Chilime Hydropower, Everest Bank Limited, NICA Bank Limited promoter shares, Kumari Bank Limited and Nabil Bank Limited promoter shares.
Trading floor witnessed 2,726 transactions of Rs 440.84 million from 899,000 shares of 119 companies during the day. Total market capitalisation stood at Rs 967.76 billion.
source: the himalayan times,25 august 2014
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Stockbrokers said that investors became cautious after the central bank issued a circular allowing commercial banks and financial institutions to invest only one per cent of total paid-up capital into shares.
“Stock brokers might have taken the central bank’s message to the commercial banks and financial institutions into consideration,” said Shreejesh Ghimire, CEO of NMB Capital, explaining the drop.
The sensitive index dropped 7.75 points to 203.54 points and float index rested at 66.66 points, losing 2.83 points from the previous close.
“Sectoral correction is not unusual. But today’s decline in the overall secondary market was quite alarming,” said Pravin Raman Parajuli, CEO of Nabil Investment.
Banking subgroup that holds the largest share of the total market capital in Nepse contracted 36.7 points to rest at 869.83 points. The hydropower subgroup plunged 152.39 points and insurance fell 237.72 points to rest at 2,350.39 points and 3,710.07 points, respectively.
Likewise, development banks lost 22.4 points to settle at 685.23 points and finance lost 7.4 points to 509 points. The others subgroup slid 5.87 points to 740.15 points. Likewise, hotels subgroup fell to 1,860.18 points, losing 9.63 points from the previous close.
Manufacturing, the only subgroup in the green, gained 0.83 points to rest at 1,193.63.
Insurance companies and development banks were the top five losers for the day. Life Insurance Company declined 9.97 per cent to Rs 3,322, Asian Life Insurance slid 9.56 per cent to Rs 927 and Prime Life Insurance fell 9.28 per cent to Rs 821. Likewise, Reliable Development Bank lost 9.4 per cent to Rs 212 and Miteri Development Bank lost 9.2 per cent to Rs 454.
Meanwhile, three finance companies and two development banks stood as the top five gainers for the day. Paschimanchal Finance climbed 9.61 per cent to Rs 251, Multipurpose Finance surged 9.32 per cent to Rs 129 and Manjushree Finance jumped 3.7 per cent to Rs 140. Nagbeli Laghubitta Bikas Bank surged 9.98 per cent to Rs 1,025 and Birta Laxmi Bikas Bank gained 8.93 per cent to rest at Rs 244.
In terms of turnover, the top five companies of the day were Chilime Hydropower, Everest Bank Limited, NICA Bank Limited promoter shares, Kumari Bank Limited and Nabil Bank Limited promoter shares.
Trading floor witnessed 2,726 transactions of Rs 440.84 million from 899,000 shares of 119 companies during the day. Total market capitalisation stood at Rs 967.76 billion.
source: the himalayan times,25 august 2014
LINK
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