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Kathmandu Sunday July 01, 2001 Ashadh 17, 2058.
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Market indications bearish, Index slumps
Post Report
KATHMANDU, June 30 - Following a brief bullish tendency in
the stock market last week after weeks of falling Index, share trading in the Nepal Stock
Exchange (Nepse), the only secondary market of the country for securities transaction,
turned bearish yet again in this week.
The performance of the fledging stock market last week had
improved after weeks of weak performance when the Nepse Index, the barometer of
investors’ confidence, surged by over 4 points. However, this week, continuing the
previous trend of the bearish market, the Index slumped more than 3 points.
While the opening Index for the week on Monday stood at
336.38, the Index slipped by 3.69 points to touch 332.69 at the close of trading Friday.
The Index last week had surged by 4.06 points breaking the pall over the capital market,
improving from 332.81 points the previous Monday to 336.87 points at the end of trading on
the previous Friday. Two weeks ago, the Index had fallen by 6.75 points.
According to the weekly share information disseminated by the
Nepse, the Index for commercial banks alone dipped from 366.87 to 361.57 points. And
it’s the fall in the Index of commercial banks that drags down the overall Nepse
Index. The reason is the usual overwhelming trading of commercial bank shares. The Index
for this sector last week had surged by almost 7 points to settle at 366.40, up from the
week’s opening Index of 359.20 points. The Index of commercial banks two weeks ago
had plunged by almost 10 points.
Similarly, the Index of finance and insurance group also
slipped from 317.77 points to 314.32 points. The group last week had registered a marginal
fall last week. The Index for other group surged marginally from 184.34 to 186.62 this
week, which last week had slumped by almost 9 points.
However, the Indices of manufacturing and processing, hotel
and trading groups remained constant. The Indices of the three groups remained unchanged
at 317.27, 289.05 and 114.63 points respectively. Barring the manufacturing and processing
group, which saw a marginal improvement last week, the indices of hotel and trading group
one week back had remained unchanged.
During this week, a total of 214,860 share units worth Rs
23.4 million were transacted in a total 933 transactions on the Nepse floor. On the basis
of the total number of transactions, Nepal Housing and Merchant Company Ltd. topped this
week. The total number of transactions for the company was 352. Similarly, on the basis of
total number of share units traded, Harisiddhi Bricks and Tile factory topped with 176,335
share units. Likewise, considering the total value of transaction, Bank of Kathmandu, with
transactions worth Rs 8.81 million, topped the market.
On a groupwise basis, the participation of commercial banks
in share trading this week stood at 85.51 per cent. The participation of the banks, which
usually command a lion’s share of the total share trading, had slipped to just 50 per
cent last week from the previous week’s 72.55 per cent. Fluctuations in the share
prices of commercial banks is the root cause of Nepse Index upheavals.
Similarly, the participation of manufacturing and procession
group stood at 2.46 per cent, down from the last week’s share transcaction of over 23
per cent. In the like manner, hotel, insurance, finance and other groups shared 0.9, 3.28,
7.52 and 0.34 per cent respectively. The participation of these groups last week were
registered 0.29, 0.99, 25.08 and 0.21 per cent respectively. No shares of the trading
group were exchanged this week.
During the week, a total of 56 companies had listed their
prices for share trading. However, shares of only 34 companies could be traded. Nepse
floor remained open for all five days this week.
Companies whose shares were traded for all the five days
include Nepal Bank Ltd. (Rs 365-375), Nepal Grindlays Bank Ltd. (Rs 2000-1990), Himalayan
Bank Ltd. (Rs 1460-1445), Nepal Bangladesh Bank Ltd. (Rs 1030-990), Bank of Kathmandu Ltd.
(Rs 855-820), Nepal Industrial and Commercial Bank Ltd. (Rs 435-410), Sagarmatha Insurance
Company Ltd. (Rs 220-225) and Lumbini Finance and Leasing Company Ltd. (Rs 220-215).
Likewise, companies whose shares were traded only for four
days include Nepal Arab Bank (Rs 1510-1490), Nepal Indosuez Bank (Rs 1150-1150) and Hisef
Finance Company Ltd. (Rs 230-230).
Finally, those companies whose shares were traded for only a
single day are Kathmandu Finance Company (10/3000), Ace Finance Company Ltd. (50/27500)
and Samjhana Finance Company (50/8000).
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