ECONOMY  

Kathmandu Sunday February 25, 2001 Falgun 14,  2057.

Nepse slide continues, Index down 28 points

Post Report

KATHMANDU, Feb 24 - Amid continuing slump in share prices of commercial banks, which constitute 85-90 per cent of the total share transaction in Nepal Stock Exchange (Nepse), the drop in the Nepse Index that began a few weeks ago continued, which saw a decline by over 28 points this week.

During the last week’s transaction, the Nepse index had registered a nose-dive of over 14 points to settle down at 436.97 points at the weekly closing on Friday. The stock market in the previous week has also tumbled by over 7 points to touch 455.34, whereas three weeks ago, it had plunged by 3.02 points to settle at 465.39 points.

According to the weekly share information compiled and disseminated by Nepse, the opening index on the first day of weekly trading on Monday was 430.77 points, which during the weekly transaction declined to touch 402.55 points at the end of this week’s transaction.

On the group-wise basis, indices of none of the groups increased. While the indices for manufacturing and processing, and trading groups remained constant, the indices of all other groups, including hotels, finance and insurance plunged down. The index of the commercial bank group, during this week, decreased by almost 45 points to touch 454.88 points from 499.94 points Monday. Since the commercial bank group alone commands lion’s share of almost 90 per cent of the total share transaction, any tumbling in its index is automatically reflected in the overall Nepse index.

The index of the commercial bank group, during the last week, had decreased by almost 21 points to touch 509.00 points from 531.67 points. Similarly, during the previous week’s transactions, the index for the commercial group had registered a decline of almost 13 points to remain at 537.51 points from 551.84 points, whereas its index, three weeks ago, had also plunged down by 16 points to touch 556.81 points.

Group-wise trading information for this week reveals the participation of commercial banks in the overall transaction at 91.55 per cent, down from last week’s 93.16 per cent. The participation two weeks ago had been 89.38 per cent, while it stood at 92.88 per cent three weeks ago.

However, the participation of manufacturing and processing group declined and captured 0.2 per cent against 0.44 per cent last week and 1.03 per cent two weeks ago. The participation of the insurance group, during the weekly share transaction, was 1.54 per cent up from 0.64 per cent, finance group 4.2 per cent, other group at 0.45 per cent, hotel group at 2.25 per cent. No transaction for the trading group was recorded this week.

Along with a decline in the Nepse Index, the stock market also saw a considerable slump in the number of share units transacted, number of transactions and the value of transaction. In a total 962 transactions, 48523 share units worth Rs 43.34 million were traded. Of the total 1,179 transactions last week, 55,023 shares valued worth Rs 59.88 million were traded on the Nepse floor. Trading stood at 49,606 shares valued at Rs 49.8 million in 1225 transactions previous week. Whereas, the stock market had witnessed the transaction of 35,622 shares at 1,058 transactions worth Rs 26.98 million three weeks ago.

Share trading this week, in terms of share units and number of transactions, was led by Nepal Industrial and Commercial Bank (NIC Bank). In a total 233 transactions, 11,080 shares of the Bank worth Rs 5.25 million were traded. In terms of the value of transaction, the market this week was led by Nepal Bangladesh Bank with trading of 1150 shares valued at Rs 9.46 in 13 transactions.

Share trading, last 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, Bank of Kathmandu was ranked first with the trade of Rs 17.64 million in 14,532 share units.

During the transaction this week, 49 companies had quoted their price for trading, out of which, shares of only 38 companies were traded. Nepse, during last week, remained open for only four days.

Companies, whose shares were traded for all four days this week, include Nepal Arab Bank (Rs 1500 - 1329), Nepal SBI Bank (Rs 2310 - 2170), Nepal Bangladesh Bank (Rs 2,650 - 2,450), Everest Bank (Rs 940 - 850), Bank of Kathmandu (Rs 1,235 - 1,120), NIC bank (Rs 520 - 441), Taragaon Regency Hotel (Rs 120 - 110) and Lumbini Finance and Leasing (Rs 285 - 261).

Companies whose shares were traded only one day include Himalayan General Insurance, NIDC Capital Markets, National Finance, Peoples Finance, HISEF Finance, Samjhana Finance, Nepal Housing and Merchant Finance, and Mahalaxmi Finance.