Confidence in stock market continues to wane

Post Report

KATHMANDU, Dec 29 – The Nepse Index, a barometer to investor’s confidence, continued to decline for a third consecutive week indicating dwindling confidence of stock investors in the only secondary market of Nepal.

According to information compiled and disseminated by Nepal Stock Exchange (Nepse), the index during the week fell 6.41 points from 277.84 in the opening of the market Monday to 271.43 at the close of weekly trading Friday.

The index has been waning since the last two weeks. While the indicator fell by over three points last week, it had slumped by more than 6 points two weeks back.

In the group-wise manner, the index of the commercial bank, which commands a lion’s share in the Nepse trading floor, fell from 287.52 to 276.79. The index of this group had declined in both the previous weeks by over 7 points and 8 points respectively.

The index of the commercial bank group, by virtue of the volume of trading, carries the largest weightage in the overall Nepse Index and any fluctuation in its index is easily transferred to the market index.

Similarly, the index for the manufacturing and processing group fell to touch 304.99 points, while that of the insurance and finance groups slumped from 310.21 to 306.14 and 298.95 to 298.10.

While the index of the manufacturing and processing group had remained unchanged last week at 301.14, the index of the insurance group had surged marginally by less than one point. The index of the finance group had however declined by 3 points.

This week, the indices of the hotel and trading groups remained unchanged at 235.77 and 102.28. The index of the other group meanwhile surged marginally from 146.12 to 147.26.

The week’s trading was dominated by commercial banks that captured the market trading to the tune of 82.61 per cent. Similarly, the participation of manufacturing and processing group, hotel group, insurance group, finance group and other group stood at 0.10 per cent, 5.64 per cent, 1.54 per cent, 10.09 per cent and 0.02 per cent respectively.

During the last week, the finance group had topped the list with share trading of 51.31 per cent. Shares of the commercial bank group that usually emerges as the leading trading instrument had remained at 45 per cent of the total trading.

During the week, a total of 42,146 shares worth Rs 14.95 million were traded in total 881 transactions. The trading last week was that of 102,361 shares valued at Rs 27.71 million in 928 transactions.

Nepal Bangladesh Bank emerged as the topper in the week’s trading both in terms of the value and number of transactions. In a total 179 transactions, share units valued at Rs 5.73 million were traded.

Likewise, Oriental Hotels Ltd. topped the list in terms of the number of share units. A total of 13,090 share units of the newly listed hotel were transacted in the Nepse floor during the week.

The stock exchange this week remained open for all five days. 54 companies had listed their shares for trading, out of which the shares of only 31 companies were traded.

Companies whose shares saw trading on all five days include Nepal Arab Bank Ltd. (895-850), Bank of Kathmandu Ltd. (325-325), Nepal Industrial and Commercial Bank Ltd. (307-292), Nepal Merchant Bank and Finance Company Ltd. (232-236), Siddartha Finance Ltd. (175-175) and Oriental Hotels Ltd. (57-57).

Similarly, companies whose shares were traded on only four days include Nepal Bank Ltd. (325-292), Everest Bank Ltd. (490-445) and Nepal Bangladesh Finance and Leasing Company Ltd. (149-155).

Companies whose shares were traded only one day are Bottlers Nepal Ltd., Soaltee Hotel Ltd., Nepal Share Market Company Ltd., HISEF Finance Ltd., General Finance Company Ltd. and Nepal Film Development Company Ltd.

TAAN welcomes govt decision

Post Report

KATHMANDU, Dec 29 – Trekking Agents Association of Nepal (TAAN) has welcomed the recent measures taken by the government to reawake the ailing tourism industry.

In a press statement issued by the association here today, the association has hoped the newly announced steps would be helpful to revive the entire tourism industry which has been worst hit by the record-low inflow of tourists.

"The decision to open some restricted places in the northern areas for the trekking purposes, heavy discounts for the film shootings and on the current visa fees along with the decision to simplify present government procedures in obtaining tourism related permission are some of the encouraging sings," states the release.

However, the release has demanded that the compulsory accompany of an environmental officer while trekking in some restricted areas need to be scrapped.