Laxmi Capital News
Nepse drops 2.66pc as stock investors in wait-and-see mode

Investor optimism following formation of a new government could notsustain in the trading week between February 18 and 22, resulting in the NepalStock Exchange (Nepse) index recording a week-on-week drop of 37.97 points or2.66 per cent.

According to share market analysts, shareinvestors are mostly in a watch-and-see mode owing to the uncertainty revolvingaround the political front.

Opening at 1,424.95 points on Sunday, thebenchmark index had fallen by 11.05 points by the day’s closing. The share marketremained closed on Monday as the country celebrated Democracy Day. On Tuesday,the local bourse plunged by 17.18 points to retreat below the threshold of1,400 points. Nepse continued southbound for the remainder of the week — down9.64 points on Wednesday and dipping by 0.10 point on Thursday to close theweek at 1,386.98 points.

The sensitive index fell by 2.67 per cent or8.05 points to 293.25 points. Similarly, float index also slipped by 2.88 percent or 2.96 points to 99.85 points.

Altogether, 4.25 million shares of 176 companiesthat amounted to Rs 1.71 billion were traded through 18,604 transactions. Thetraded amount was 10.75 per cent higher than the preceding week when 16,638transactions of 3.79 million shares of 179 companies worth Rs 1.54 billion hadbeen undertaken.

Contrary to the previous week when all thesubgroups had landed in the green, the secondary market was splattered in redthis time around.

Hydropower led the pack of losers, with thesubgroup slumping by 4.46 per cent or 81.26 points to 1,742.11 points, weigheddown by share value of Chilime diving by 4.60 per cent to Rs 850 and Sanima Maiby 3.21 per cent to Rs 392.

Trailing close behind, microfinance plunged by4.42 per cent or 76.21 points to 1,649.53 points.

Insurance subgroup retreated by 3.97 per cent or289.68 points to 6,998.96 points. Share price of insurance companies likeShikhar lost 6.86 per cent to Rs 1,141 and Premier lost 7.77 per cent to Rs1,245.

Hotels dropped by 3.09 per cent or 65.05 pointsto 2,039.40 points, and development banks fell by 3.03 per cent or 49.29 pointsto 1,579.54 points. Finance slipped by 2.27 per cent or 16.33 points to 701.43points.

Banking lost 2.21 per cent or 27.49 points to1,214.89 points. This was because of commercial banks like Nabil down 1.27 percent to Rs 1,090 and
Everest dropping by 2.91 per cent to Rs 835.

Share value of Nepal Telecom — the company withhighest market capitalisation in Nepse — falling by 1.17 per cent to Rs 757caused others sub-index to retreat 1.45 per cent or 11.09 points to 752.39points.

Trading shed 1.36 per cent or 3.04 points to219.92 points, while manufacturing dipped by 0.33 per cent or 8.31 points to2,467.35 points. Unilever fell by 0.08 per cent to Rs 27,966, while share priceof Himalayan Distillery went down by 3.14 per cent to Rs 1,201.

Nepal Life Insurance Co (Promoter Share) led thegroup of companies with highest weekly turnover with Rs 112.06 million.

It was followed by Om Development Bank with Rs80.04 million, Century Commercial Bank with Rs 73.33 million, Rastriya Beema CoLtd (Promoter Share) with Rs 67.69 million and Sanima Bank with Rs 60.47million.

Meanwhile, Century Commercial Bank was theforerunner both in terms of trading volume and the number of transactions, with364,000 of its shares changing hands through 1,121 transactions.

NEW LISTING

Company

Type

Unit

Sanima Equity Fund

Ordinary

130,000,000

Source: The Himalayan Times, 25th Feb2018

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