Nepse Posts Double Digit Growth

Nepse Posts Double Digit Growth
ArthaExpress, 6-Apr-08

Though it could not be said a buoyant week for the Nepali equities market, it recorded a healthy double digit growth of 13.42 points to 730.14 points to end on a firm note from the last week´s closing of 716.72 points.

The sensitive index also recorded 4.25 points growth to 190.35 points from last week´s closing of 186.10 points.

The secondary market ended in the green zone on four of the five day trading, loosing only one day on Sunday by 13.4 points to 702.97 points from last week´s closing of 716.72 points.However, on Monday it bounced back by 6.43 points to 709.4 points. Similarly, on Wednesday and Thursday also it posted a growth by 4.04 points and 13.58 points to close at 730.14 on the last day of the weekly trading in the secondary market.

In terms of monetary value, Machhapuchhre bank (with Rs 125.705 million), Bank of Kathmandu (with Rs 38.19 million), Standard Chartered Bank (with Rs 22.68 million), Kumari Bank (with Rs 21.47 million) and Nabil Bank (with Rs 14.32 million) are this week´s top performers.

Altogether, 86 companies out of total listed companies´ shares were traded at the sole secondary market, where the government bonds and debenture were not traded this week, too. The secondary market is witnessing more and more companies´ shares being traded every week.

The better performance of Commercial Banks and Development banks group has pushed the Nepse up as the capital market is dominated by the financial institutions.

Development bank group posted a healthy growth of 27.99 points to 1035.79 points from the last week´s closing of 1007.60 points. Similarly, Insurance and Commercial banks group have also contributed to the Nepse this week. However, the contribution of companies listed under ´A´ category is less than the past couple of weeks´ It contributed to only 48.86 per cent to the total transactions.

Machhapuchhre Bank topped the chart both in terms of monetary value with Rs 120.57 million — due to the transaction of its promoters´ share — and in terms of number of shares traded with 2,51410 units of shares this week. In terms of number of transaction, Himchuli Bikas Bank topped the chart with 480 transactions.

Nepse from this Monday started separate trading of promoters´ shares also. On the first day, Alpic Everest Finance Ltd and Machhapuchhre Bank traded their 1,28,000 units shares for Rs 12.58 million and 2,51,410 units for Rs 125.7 million to become the first listed companies to trade promoters shares through secondary market, according to the new regulation.

With the new practice, the capital market is expected to be dynamic and price of the ordinary shares to be stabilised with a new supply of shares. The capital market has been on fire due to less supply of the shares and high demand.