Economy News The Rising Nepal (Daily)

Stock market volatile, but trend not pessimistic

BY A STAFF REPORTER

Kathmandu, July 1 - The capital market remained rather volatile in the past two weeks, with a dramatic upsurge and sudden downfall in the transaction of shares in the NEPSE’s trading floor.

Though the volume of share trading has declined, the situation of the capital market is not that pessimistic as compared to the previous months. The stock market is gradually picking up and this kind of trend will go on, the local stock brokers say.

Nepal Industrial and Commercial(NIC) Bank in terms of the volume of transaction has left other companies far behind. A total of 38,390 shares amounting to Rs. 1,66,55,970/- were traded through 513 transactions this weekend.

A total of 115,384 shares amounting to Rs 43,046,572/- were traded through 1090 transactions, whereas the number of shares traded in the NEPSE’s trading floor in the previous week was 135176 which was equivalent to Rs. 89,757,798/- The number of transaction was 554.

Though the number of transaction this weekend has increased by 536, the total value amount of transactions has experienced a big downfall.

On the basis of transaction, commercial banks are still far ahead of the organisations of other sectors like- manufacturing & processing, hotel, insurance, finance and trading. The weekly NEPSE index in comparison to the opening hour of the weekend has increased. The index increased by 0.47 at the end.

Similarly, in the groupwise NEPSE Index that of commercial banks has declined to 362.71 from 363.96. The manufacturing sector in the index has increased to 333.23 from 332.82. Similarly, the hotel sector has also witnessed decline. This sector has declined to 335.64 from 339.3. In the NEPSE index Trading sector has remained atS 123.66. Insurance and financesector in the index increased to 309.2 from 308.13.

In the groupwise transaction, a total of 53335 shares that belong to commercial banks were traded this week. The total amount of shares was Rs.32,018,915/- (74.67 % in total transaction) whereas the figure of the previous week was Rs 8,5199,845/-( 94.05 %).

In manufacturing & processing sector a total of 2986 shares amounting to Rs 130122 was traded throughout the week. The number of shares traded in previous week was 6910.

A total of 1360 shares of Insurance sector were traded this weekend. The amount was Rs.328,890/ -

Similarly 3893 shares amounting Rs 587290/- of hotel sector were traded. On the basis of transaction volume the banking sector is followed by the finance sector, both in terms of volume of shares and the amount being traded. Transaction of trading sector is insignificant.

This week commercial banks occupy 74.67 % in total transaction, whereas manufacturing sector obtains 0.3%, hotel sector 1.37 % and insurance sector 0.77%. The percentage of finance sector in the total transaction is 6.48% . The record of other companies sector has 16.42 % in the transaction. Among the companies having all five days of transaction in the weekend were Nepal Bank Ltd. ( Rs297-291), Nepal Arab Bank Ltd. (Rs1266-1272), Himalayan Bank (Rs 1615), Nepal SBI Bank (Rs 1070), Nepal Bangladesh Bank (Rs 1340-1360), Everest Bank (Rs 845-850), Bank of Kathmandu (Rs826-821). Necon Air (Rs 225-219) and Taragaoun Regency (Rs 155-150). The companies having four day transactions were Nepal Indosuez Bank (Rs 1365-1385), Nepal Grindlays Bank (Rs 1900-1901), Everest Insurance Co. Nepal Share Markets, Kathmandu Finance and People’s Finance. National Finance Co. Ltd. and Nepal Insurance Co. had the transaction of one day.

Out of the 51 companies registered, transaction of 42 of them took place on the NEPSE’s trading floor.

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