ECONOMY  

Kathmandu Sunday February 18, 2001 Falgun 07,  2057.

Nepse slides further by over 14 points

Post Report

KATHMANDU, Feb 17 - The reappearance of the series of tumbling in the Nepalese stock market has created fresh concern over the sustainability of the share market among speculative investors. During this week’s transaction, the Nepse index registered another nosedive of over 14 points to settle at 436.97 points at the weekly closing on Friday.

The stock market last week has also tumbled by over by 7 points to touch 455.34, whereas the Nepalese share market, two week’s ago had plunged by 3.02 points to settle at 465.39 points.

According to the weekly share information complied and disseminated by then Nepal Stock Exchange (Nepse), the opening index on the first day of weekly trading on Monday was 451.57 points, which during the weekly transaction declined to remain at 436.97 points at the end of this week’s transaction.

On the group wise basis, the indices of all the groups except the insurance and finance group plunged during the weekly transaction. The index of the commercial bank group, during this week, decreased by almost 21 points to touch 509.00 points from 531.67 points. Since the commercial bank group alone commands lion’s share of more than 90 per cent of the total share transaction, any tumbling in its index automatically drags the whole Nepse index down.

During last week transactions, the index for the commercial group had registered similar decline of almost 13 points to remain at 537.51 points from 551.84 points whereas its index, two weeks ago had also plunged by 16 points to touch 556.81 points.

Similarly, the index for the manufacturing and processing group, during the weekly transaction, also tumbled to touch 371.96 from 373.44 points. Its index, during last week’s transaction has also witnessed a similar, albeit marginal decline whereas, two week’s ago the index for the group had remained unchanged. Similarly, the index of the hotel group, which had showed an impressive improvement of over 18 points during last week’s transaction again slumped by almost 8 points to settle at 340.22 from 348.99 points.

Similarly, the index for the other group also slipped to 264.21 from 275.62 points. Similar plunging, albeit marginal, was also recorded for the insurance and finance group, which during this week’s transaction, touched 354.77 from 354.90 points. However, the index for the insurance and finance group increased nominally to touch 252.00 from 350.68 points. And, the index for the trading group again remained unchanged at 116.75 points.

Group wise, trading information for this week reveals the participation of commercial banks in the overall transaction also improved to capture 93.16 per cent from 89.38 per cent recorded last week. Such participation, two week’s ago was 92.88 per cent.

The participation of the manufacturing and processing group also declined and captured 0.44 per cent against last week’s 1.03 and 1.84 per cent recorded two weeks ago. Similarly, the participation of the insurance group, during the weekly share transaction, was 0.64 per cent, other groups 0.13 per cent, the hotel group 0.43 per cent and trading group 0.01 per cent.

Similarly, the participation of the finance group, which has been the second largest participant in the Nepalese stock market also declined to remain at 5.20 per cent against 6.82 per cent, recorded last week.

The Nepse market, which had surged in terms of number of transactions, share units and value of transaction last week, showed a mixed trend during this week’s transaction. The share market soared in terms of share units and value of transaction, however, it declined in terms of number of transaction, mainly due to declined share transactions of commercial banks. Of the total 1,179 transactions this week, 55,023 shares valued worth Rs 59.88 million were traded on the Nepse floor. Trading last week stood at 49,606 shares valued at Rs 49.8 million in 1225 transactions whereas, two weeks ago, the stock market had witnessed the transaction of 35,622 shares at 1,058 transaction worth Rs 26.98 million.

Share trading, this week, in terms of number of transactions was led by Lumbini Finance and Leasing company with 328 transactions. However, in terms of value of transaction and share units, the Bank of Kathmandu was ranked first with the trade Rs 17.64 million in 14,532 share units.

During the transaction this week, fifty companies had quoted their price for trading, out of which, shares of only thirty-four companies were traded. Nepse, during last week, remained open for all five days.

Companies, whose shares were traded for four days this week, include Nepal Bank Limited (Rs 480 -unchanged), Nepal SBI Bank (Rs 2,259 - 2,307), Nepal Bangladesh Bank (Rs 2,600 - 2,636), Everest Bank (Rs 940 - 935), Bank of Kathmandu (Rs 1,200 - 1,235), NIC bank (Rs 510 - 515), HISEF (Rs 290 - 305) and Lumbini Finance and Leasing (Rs 361 - 275).

Companies which shares were traded only four days included Nepal Indosuez Bank (Rs 2,350 - 2,250), Nepal Grindlays Bank (Rs 2,640 - 2,350), Nocon Air (Rs 190 - 180), Nepal Finance and Saving (Rs 760 - unchanged), Kathmandu Finance (Rs 325 - 335), United Insurance (Rs 240 - unchanged) and Ace Finance (Rs 550 - 605).

Similarly, companies whose shares were traded for only one day include Kathmandu Finance (10/3,500), Nepal Share Markets (10/18,680), Narayani Finance (40/18,680) and Pokhara Finance (20/5,600).