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Kathmandu Sunday March 25, 2001 Chaitra 12, 2057.
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Share prices sink; hopes faint for revival
Post Report
KATHMANDU, March 24 - After recording a tumble of over
seven points last week, the Nepalese stock market witnessed yet another plunge of over 11
points this week, mainly due to the slump in the share prices of the commercial banks,
which hold majority share transaction on the Nepse floor.
After a series of continued tumbles for weeks, the Nepalese
stock market, during the transaction two weeks ago had experienced a surge of over 4.67
points, which had brought the fresh expectations of the revival of the money market among
speculative investors. However, such expectations soon evaporated after the market
witnessed a continued slump for two consecutive weeks.
According to the weekly share information complied and
disseminated by Nepal Stock Exchange (Nepse), the opening index on the first day of
trading on Monday this week was 388.40 points, which tumbled to touch 376.98 at the end
day of trading on Friday.
On the group-wise basis, except for the other group and
trading group, indices of all other groups, during the last week’s transaction,
declined creating yet another concern among investors about the sustainability of the
stock market. During the week, the index of commercial banks declined to touch 420.89 from
432.19 points. The index of commercial banks, which bears a lion’s share in the
Nepalese money market, had recorded a slump of 10 points to touch 435.72 points from
445.32 points last week, whereas it had registered a surge of almost seven points two
weeks ago.
Similarly, the index of manufacturing and processing group
registered a huge plunge of almost 26 points and remained at 346.90 from 372.09 points,
whereas the overall last week’s index for the manufacturing and processing group had
remained unchanged at 372.09. After recording a huge slump of almost 20 points last week,
the index for hotel group again declined to remain at 303.66 from 310.06. Finance and
insurance group also witnessed similar slump, by felling down to 340.77 from 346.22
points.
However, the index of other group recorded a surge of
almost six points and remained at 225.14 from 219.70 points. Similarly, during the last
week’s transaction, the index of trading group remained unchanged at 116.68 points.
Group-wise trading information for this week reveals that
the participation of commercial banks continued to make drastic slump to remain at 58.50
per cent from 60.33 per cent as recorded last week. Such participation, just two weeks ago
used to be around 90 per cent. The contribution of commercial banks in the total
transactions, during the previous week was 91.27 per cent whereas it was 92.72 per cent
three weeks ago.
At the same time, the participation of finance group
recorded a marginal decline and captured 38.20 per cent of the total transaction from
38.03 per cent as recorded last week and just 3.72 per cent as recorded two weeks ago.
Similarly, contribution of insurance, manufacturing and processing and other groups stood
at 0.30 per cent, 0.80 per cent and 2.10 per cent respectively.
Alone with the slump in the Nepse index the volume of share
trading also dived this week. During last week’s transaction, a total of 37,718 share
units valued at Rs 22.48 million were traded in 669 transactions. The Nepse floor, during
last week transaction had witnessed a total 1,151 transaction in which a total of 196,220
share units valued at Rs 96.12 million were traded whereas, trading in the previous week
stood at 36,289 shares valued at over Rs 29.48 million in 676 transactions.
During the transaction this week, 50 companies had quoted
their price for trading, out of which, shares of 31 companies were traded. Nepse, during
the week, remained open for all five days.
Companies, whose shares were traded for all the trading
days, include Nepal Arab Bank Ltd. (Rs 1,415-1,425), Nepal Grindlays Bank (Rs
1,900-1,925), Himalayan Bank (Rs 1,575 - 1,500), Everest Bank Ltd. (Rs 840-815), Bank of
Kathmandu (Rs 1,090-1,060), NIC Bank (Rs 481-482), Necon Air (Rs 141-150) and Lumbini
Finance and Leasing (Rs 264-245).
Similarly, Himalayan Savings and Finance Company Ltd was
the only company during the last week’s transaction companies whose shares were
traded for only one day.
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