Weekly share update : Nepse continues to rise

Weekly share update : Nepse continues to rise
ArthaExpress, 6-Oct-07

The Bull Run continued at Nepal Stock Exchange (Nepse) this week, too, as the share trading posted yet another record by closing at an all time high of 899.42 points from the opening 885.50 points on Sunday.

As the rush of gullible investors continued at the country’s sole secondary market, the Nepse index this week posted a growth of 13.92 points.

Market watchers claim that repeated warnings and pre-cautionary notice of Securities Board of Nepal (SEBON) has slowed down the Bull Run in the market, however it is still picking up marginally.

“Increasing political uncertainty has also not affected share market giving strong ground for accusation of foul play and inside trading,” market pundits say adding that stock market worldwide is very sensitive but our stock market is behaving ‘abnormally’.

Given the size of our economy and almost no real sectors’ involvement in the Nepse mean growth doesnot reflect national economy. And the experts recently are questioning the source of investment also.

The weekly turnover for this week stands at Rs 747.1 million with 9,35,119 unit shares having been traded through 2230 transactions. Out of the total trading, the companies under ‘A’ category comprised of 53.48 per cent or Rs 399.6 million.

As usual financial institutions including commercial banks and development banks and insurance companies were the market leaders, while the firms under hydropower and hotel group became the loser this week.

The commercial banks group, which is the largest scrip by volume at the Nepse floor, posted a growth of 10.20 points this week. The group’s index climbed up to 1005.72 points from the opening 995.52 points.

The development banks group posted a whopping growth of 117.43 points and closed at 869.66 points. The finance and insurance groups, too, managed growth as their indices closed at 593.17 points and 698.16 points respectively. Earlier, the finance group began its trading at 550.06 points, while the insurance group started at 690.65 points.

The hydropower group, which has been one of the aggressive performers earlier, however, lost 16.58 points this week to close at 1373.75 points. The group began its trading at 1390.33 points.

Lumbini Bank Ltd outshone all others in terms of monetary value for the week, as the bank’s shares worth Rs 243.74 million exchanged hands at the floor and it also stood first in terms of the largest number of shares as its 4,20,300 unit shares traded during the week. Nepal Bangladesh Bank saw the highest number of transactions at 169, this week.

Among the top 10 performers for the week nine are commercial banks and one is a development bank. The floor remained open for five days.

According to the monthly data, in the month of Bhadra, Nabil Bank Ltd outshone all others in terms of market capitalisation. Nabil Bank’s market capitalisation has touched Rs 29.45 billion, which is the record in itself. Similarly, Standard Chartered Bank comes second in terms of market capitalisation with Rs 28.96 billion in Bhadra.