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Kathmandu Monday March 04, 2002 Falgun 20, 2058.
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Economy, Finance and Market
By Supa Upadhyay
Domestic money market:
The Average Weighted Discount Rate (AWDR) of 91-day Treasury Bills (TBs)
dipped by 10 basis points to 5.34 percent compared to previous week. The rupee was traded
higher at NPR 98.73 and lower at NPR 98.66 for 91-day TBs. The NRB had received 35 bids
worth NPR 1503.5 million against the notified amount NPR 890 million for 91-day TBs. The
Repo rates for member banks and institutions have been quoted at 6.3405 for the trading
days 05 to 11 March 2002 for 91-day TBs. The outright purchase facility for bank,
institutions and other on TBs is also available. In the regular weekly auction, the NRB is
going to issue 91-day TBs worth NPR 850 million and 364-day TBs worth NPR 400 million on
March 05, 2002.
Domestic capital market:
The stock market continued a bear trend buoyed with recession in the economy.
The share prices of financial institutions lost sharply. The price of Nepal Lever tumbled
by NPR 175 over the week. The NEPSE Index-100 opened lower at 225.11 dipped further in all
consecutive trading days and finally closed lower to 218.59, netting a significant loss of
7.44 points over the week. This week, trading was estimated at 49300 shares valued NPR
18.9 million compared to 46884 shares valued NPR 25.1 million of previous week. Commercial
Banks and Finance Companies shared 80.10 percent and 6.91 percent respectively of total
traded amount. This week, the index of Business Sector only can able to improve while all
other sector viz. Hotel Sector, Development Bank, Insurance Sector, Finance Sector,
Production Sector and Commercial Banks lost. Out of thirty-three traded companies, only
seven companies improved, twenty-two companies lost and four traded companies remain
unchaged at their previous prices. Nepal B’desh Bank, Nepal Development Bank and Bank
of Kathmandu registered the first, the second and the third most traded companies trading
13870, 8580 and 4618 shares respectively. Shares of Nepal Bank Ltd, Nepal SBI Bank, Nepal
B’desh Bank, NIC Bank, Bank of Kathmandu, Oriental Hotel, People Finance, Nepal
Merchant Bank & Finance, Siddhartha Finance, and Nepal Development Bank were able to
trade in all five working days. Likewise, Nabil Bank, Standard Chartered Bank, Everest
Bank, Alpic Finance, Nepal B’Desh Finance and Premier Insurance were able to trade in
four working days.
Forex round-up:
The US dollar strengthened against Sterling and Euro over the week on
encouraging US economic data and indicators. Recent favourable economic data, which gave
strong signals that, the US economy is beginning to bounce bank.
At the same time, the yen continues to strengthen, despite Japan’s poor
economic fundamentals and rumours of further sovereign credit downgrades owing to the slow
progress of structural reform. As the market still is short of yen, good yen buying on the
crosses is helping to steer the dollar back from the yen 134.
The INR closed weaker against the greenback on the tension in the Gujarat.
The market reaction on the Indian budget-speech is yet to come. However, the RBI is seen
to support the level 48.80-85. The NPR remains unchanged against the greenback over the
week. |
