Nepse follows global stock climb, surges by 7 points

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KATHMANDU, March 22 : Propelled by a significant breakthrough in the government-Maoist peace process along with dwindling gold price, which has opposite correlation with the capital market, the Nepal Stock Exchange (Nepse) Index recorded an upsurge during the week.

The index, a quick barometer to gauge investor confidence, recorded a sharp recovery of 7.22 point during the week to touch 217.32 point on the closing day against 210.10 point recorded on the opening day, according to the Nepse. The index had soared by 2.46 point the last week after recording a continuous decline for over a month.

Rise in Index during the week was largely triggered by better performances recorded in the commercial bank group, which carried a maximum weight in the secondary market. The largest among the Nepse-enlisted groups, the commercial bank group recorded rise in its index by over 11 points.

The index of the group settled at 216.03 point on Friday against 204.76 point recorded on Monday. The index of the group had soared by about 4 point during the last week.

The index of the development bank group too soared by over 5 point to touch 270.80 point from 265.61 point during the week. Last week, it had recorded a growth of about one point.

The insurance group, likewise, saw a marginal improvement in its index during the week. Its index, which opened at 251.42 point on Monday, settled at 251.81 point on the closing day of the week. The index of the group had declined marginally last week.

Indices of the finance and the trading group, however, slid marginally during the week. Like the last week, the index of the finance group tumbled to 222.98 point from 223.66 point, while the index of the trading group slid to 91.31 point from 92.85 point. The index of trading group was maintained constant last week.

Meanwhile, indices of manufacturing group, the hotel and the other group remained constant at 252.12 point, 205.32 point and 61.19 point throughout the week. Last week, the hotel group had recorded a rise in its index by over a point, while indices of the manufacturing and the other group had remained constant.

As usual, the commercial bank group captured the largest chunk of stock trading carried out at the Nepse floor. Its trading comprised 59.17 per cent of the total stock trading. While the Insurance group captured 16.61 per cent of the total stock trading, the finance group captured 15.69 per cent.

Likewise, the development bank group captured 7.48 per cent. The hotel group, the trading group and the manufacturing group comprised 0.85 per cent and 0.16 per cent and 0.04 per cent of the total share trading respectively.

Nepal Life Insurance Company recorded the highest shares trading both in share units, transaction and monetary terms for yet another week. A total of 11,330 shares of the company were traded at Rs 1.39 million through 791 transactions.

During the week, a total of 40,520 share units were traded at Rs 9.23 million from 1,671 transactions, while the last week, 67,256 shares were traded at Rs 13.87 million through 3,543 transactions, according to the Nepse.

Shares of Standard Chartered Bank, Everest Bank, Bank of Kathmandu, Nepal Life Insurance Company, Gorkha Finance, Lumbini Finance, Shree Investment Finance, Development Credit Bank and Nepal Development Bank were traded throughout the four-day week.

Likewise, shares of Himalayan Bank, Nepal SBI Bank, NB Bank, NIC Bank, Oriental Hotels, United Finance, Nepal Merchant Bank and Finance and International Leasing and Finance were traded for three days. While, shares of Everest Insurance, Yeti Finance, Hisef Finance and Alpic Everest Finance were traded only once during the week.

Govt to bring new plan to empower private sector

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BARA, March 22 : Addressing the business community of four Terai districts, Dr Yubaraj Khatiwada, a member of National Planning Commission (NPC) today said that the government is preparing new plans and strategies to empower the private sector.

"The government is planning to come with new plans and strategy to empower the private sector, which direly seeks revival from the present ‘sick’ stage," he said.

Dr Khatiwada further noted that the government is undertaking a serious homework to constructing alternative road links between the Capital and Terai and also starting railway transport. "The empowerment of the industrial sector can be achieved only if supporting infrastructure is provided," he remarked.

Speaking at an interaction programme on "Economic Sector at Present Context" organised jointly by district chambers of commerce and industry of Kalaiya, Birgunj, Makawanpur and Rautahat, he attributed global economy slowdown, besides domestic violence, of having an influential impact on Nepal’s economic downturn.

"Also increased tension between bordering India and Pakistan hit hard the Nepali tourism industry, which is one of the major foreign money earners, in the recent past," he added. Increased domestic violence was one major factor that cracked the confidence of the national economy though, Dr Khatiwada remarked.

"The country incurred a loss of Rs 7 billion during the last fiscal year and out of this over Rs 4 billion was due to violence," he stated.

Speaking on the occasion, Rajendra Kumar Khetan, second Vice President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) meanwhile, assured the business community that Maoists have committed of not going against open and liberal economy.

Quoting Krishna Bahadur Mahara, a senior Maoist leader, he said that the Maoists now are ready to move with realistic approach in various sectors, including industrial, which has been hardly hit in recent times due mainly to escalating domestic violence.

"Industrialists now need not be scared of Maoists as they have committed to stop extortion of donation from the business community," he added. A commitment in this line had come from Mahara while interacting with business community in Kathmandu last week. On the occasion, the senior Maoist leader had shed light on economic strategy of the party.