The Nepal Stock Exchange (Nepse) benchmark index dived 30.75 points this week to close at 1,169.4 points on Thursday -- the last trading day of the week.
After remaining bullish for over a month in reaction to the central bank telling bank and financial institutions (BFIs) to increase paid-up capital, the stock market has been on correction mode in recent days.
Nepal Rastra Bank, in its monetary policy for Fiscal Year 2015/16, increased the paid-up capital floor for the BFIs by multifold.
On Monday, the Nepse index hit an all time high of 1,200.15 points as positive political development and expectations that BFIs would offer bonus shares and hold rights issues to meet the newly-set minimum paid-up capital requirement buoyed investor sentiment.
According to stock brokers, the recent fall in share prices is mainly due to a worsening political environment and investors trying to book some profits.
"There were strikes and violent protests in the southern part of the country against the federal structure proposed in the draft constitution. This political instability has weakened the sentiment of investors," Bhakta Ram Ghimire, who runs brokerage firm Imperial Securities Company Ltd, says. "Also, this week the Finance Committee of the parliament grilled central bank officials to discuss the newly-set paid-up capital requirement. There are worries among investors that the parliamentary panel could direct NRB to scrap the new requirement," he adds.
Broker Ghimire also said that some investors are also rushing to sell their shares to cash in on the recent rise of the price in the bullish market.
The indexes of most of the trading groups had a down arrow alongside at the end of the week. Investors of insurance companies were the biggest loser this week as the Insurance group sub-index dropped 378.57 points to close at 5,189.38 points.
Indices of the Hydropower and the Banking groups also tumbled 38.38 points and 38.83 points, respectively, ending at 2,082.42 points and 1,089.92 points.
Shares of the companies in the Hotels group also shed a collective 27.95 points to finish at 2,000.15 points.
The Development Bank group's index also went down 6.64 points to end at 930.479 points. The indices of the Finance and the Trading groups inched down 1.84 points and 0.48 point to settle at 551.69 points, respectively. The indices of the Others group, and the Manufacturing and Processing group, however, rose this week, by 35.24 points and 95.85 points, respectively, to close at 787.13 points 2,116.67 points.
A total of 4.05 million units of shares of 161 companies, collectively worth Rs 2.53 billion, were traded in the market this week through 10,929 transactions.
Everest Bank Ltd was the top company in terms of turnover with the total value of its shares traded in the week standing at Rs 416.55 million while Siddhartha Investment Growth Scheme I had the most number of shares traded in the week at 362,000 units and Kumari Bank Ltd was top in terms of number of transactions with
source: republica,4 sep 2015
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After remaining bullish for over a month in reaction to the central bank telling bank and financial institutions (BFIs) to increase paid-up capital, the stock market has been on correction mode in recent days.
Nepal Rastra Bank, in its monetary policy for Fiscal Year 2015/16, increased the paid-up capital floor for the BFIs by multifold.
On Monday, the Nepse index hit an all time high of 1,200.15 points as positive political development and expectations that BFIs would offer bonus shares and hold rights issues to meet the newly-set minimum paid-up capital requirement buoyed investor sentiment.
According to stock brokers, the recent fall in share prices is mainly due to a worsening political environment and investors trying to book some profits.
"There were strikes and violent protests in the southern part of the country against the federal structure proposed in the draft constitution. This political instability has weakened the sentiment of investors," Bhakta Ram Ghimire, who runs brokerage firm Imperial Securities Company Ltd, says. "Also, this week the Finance Committee of the parliament grilled central bank officials to discuss the newly-set paid-up capital requirement. There are worries among investors that the parliamentary panel could direct NRB to scrap the new requirement," he adds.
Broker Ghimire also said that some investors are also rushing to sell their shares to cash in on the recent rise of the price in the bullish market.
The indexes of most of the trading groups had a down arrow alongside at the end of the week. Investors of insurance companies were the biggest loser this week as the Insurance group sub-index dropped 378.57 points to close at 5,189.38 points.
Indices of the Hydropower and the Banking groups also tumbled 38.38 points and 38.83 points, respectively, ending at 2,082.42 points and 1,089.92 points.
Shares of the companies in the Hotels group also shed a collective 27.95 points to finish at 2,000.15 points.
The Development Bank group's index also went down 6.64 points to end at 930.479 points. The indices of the Finance and the Trading groups inched down 1.84 points and 0.48 point to settle at 551.69 points, respectively. The indices of the Others group, and the Manufacturing and Processing group, however, rose this week, by 35.24 points and 95.85 points, respectively, to close at 787.13 points 2,116.67 points.
A total of 4.05 million units of shares of 161 companies, collectively worth Rs 2.53 billion, were traded in the market this week through 10,929 transactions.
Everest Bank Ltd was the top company in terms of turnover with the total value of its shares traded in the week standing at Rs 416.55 million while Siddhartha Investment Growth Scheme I had the most number of shares traded in the week at 362,000 units and Kumari Bank Ltd was top in terms of number of transactions with
source: republica,4 sep 2015
LINK
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