Share market tumbles as strikes grip streets

BY A STAFF REPORTER

Kathmandu, Dec. 30: Nepal’s stock market witnessed a continued decline in trading last week also. During the week covering December 25 to December 28, Nepal Stock Exchange Ltd. (NEPSE) reported a steady fall in terms of the number of shares and transactions as well as the value of shares traded.

The NEPSE indices did not show a greater decline but the overall share trading recorded a substantial fall.

"The fall in the share-trading was mainly due to the Bandha and strikes that paralysed the capital most of the days in the week," a broker said on the condition of anonymity.

"Buyers, sellers and brokers had a fearful time attending the trading floor as the streets were gripped by protests and ensuing tensions," he added.

The present situation of the share market, according to analysts, may also be attributed to the fact that public investors in Nepal’s capital market are now poised between different investment opportunities and showing less readiness to put up their money than in the past weeks.

In the reported week, the NEPSE index, according to Nepal Stock Exchange Ltd., posted a 6.70-points decline. The NEPSE that figured 494.71 on the first day (December 25) of the week nose-dived to 488.01 on the concluding day (December 28) of the week. The indices were 493.40 and 489.03 on the second, and third days of the trading week, respectively. The NEPSE floor had remained closed on December 29 Friday to celebrate the Auspicious Birthday of His Majesty the King.

During the reported week , altogether 35,425 units of shares belonging to 36 enlisted companies were traded for Rs. 27,286,103/- through 484 transactions, according to the report received from Nepal Stock Exchange Ltd. In the week preceding it, 93,684 units of shares worth Rs. 57,277,338/- were traded through 1,039 transactions on the NEPSE floor.

The market has, as such, seen more than a whopping 100 per cent decline in share trading, measured in terms of the number of shares (units) and transactions, as well as the share value (amount).

Analyst said that lack of better investment opportunities in other areas of the economy and lower bank interest rates are still likely to shoot up or, at least, maintain the market and investments in the market, if political turmoil is avoided.

It was the shares of Nepal Bangladesh Bank Ltd. that led the trading with the highest number of transactions (60).

The Bank of Kathmandu (BoK), however, topped the chart in terms of the value of shares traded. The shares worth Rs. 4,938,780/- of the BoK were traded during the reported week.

And it was the General Finance Co. Ltd. emerging as the leader in terms of the number of shares (5, 985 units) traded on the floor.

So far as the group-wise trading of shares was concerned, the commercial banks group repeated its feat registering the biggest amount of transaction. A total of 16,064 (51.17 per cent) units of shares belonging to the commercial banking sector was traded for Rs 23,000,240/- (84.52 per cent). The transaction of banking sector was far behind trailed by that of finance companies sector with a total share value worth Rs. 2,969,735 (10.91 per cent).

According to Nepal Stock Exchange Ltd., securities of 50 listed companies were registered for transaction on the floor of Nepal Stock Exchange Ltd. last week, but securities of only 36 listed companies were traded.

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