Economy News The Rising Nepal (Daily)

NEPSE -Weekly Round-up

BY A STAFF REPORTER

Kathmandu, July 15: Though there have been no significant changes in the monetary variables, the stock market is gaining a momentum in comparison to the periods of the past few years.

The volume of transaction in the stock market and response of people towards this, indicates positive signal, say experts, however, the present trend of stock market is not based on money market they observe. One can observe that the present trend of stock market (since June first week) has remained volatile, but it is picking up irrespective of any changes in M1 and M2 variables.

Going by NEPSE trading floor, this week's (July 10-14) volume of transaction has increased by Rs 3,58,69,759/- in comparison to the previous week ( July 3-7). But the number of transaction has decreased.

A total of 112, 698 shares amounting to Rs 911,38, 274/- were traded through 1379 transaction this week whereas total of 100,239 shares equivalent to Rs 552,68,515/- were traded through 1654 transactions in the previous week.

On the NEPSE's trading floor, Nepal Industrial and Commercial (NIC) Bank is continuously dominating the stock market with the sale of 60,500 shares amounting to Rs 339,456,00/-

This is the third week that NIC Bank has been continuously dominating the market both in terms of the volume of transaction and the number of traded shares.

The weekly NEPSE index in comparison to the opening hour of the weekend has witnessed a significant increment. The index increased by 11.44 through out the weekend. The NEPSE index in the opening hour was 349.26 that increased to 360.7 at the end.

On the basis of transaction, commercial banks are still far ahead of other organizations in the sector like- manufacturing & processing, hotel, insurance, finance and trading.

In the NEPSE Index, commercial banks have increased to 397.17 from 380.37. Manufacturing sector in the index has increased to 340.59 from 337.45. It is to be noted that this sector had witnessed decline in the previous week. It had decreased to 327.75 from 333.23.

The hotel sector has witnessed an increase. It has increased to 346.15 from 340. 58 In the NEPSE index Trading sector like in the previous week has remained to 123.74 from 123.66. However, the insurance sand finance sector in the index has experienced a decline. It decreased to 305.98 from 310. 39. The other sector has also experienced a slight decline.

In group-wise transaction, a total of 106045 shares that belonged to commercial banks were traded this week. The total amount of shares was Rs 885,28594/-. This sector has occupied 97.14 % in total transaction.

It is to be noted that a total of 92,938 shares of commercial banks were traded in the previous week. The amount of shares was Rs 533, 93,891/- that was 96.61 % in total transaction.

In Manufacturing and Processing sector a total of 180 shares amounting to Rs 370,300/- were traded. This sector occupies only 0.1 6 % in the total transaction. In the previous week 110 shares amounting to Rs 135750/- were traded.

A total of 1020 shares of Insurance sector were traded this weekend. The amount was Rs.306,280/ -

Similarly 2310 shares amounting Rs 359,770/- of hotel sector were traded. On the basis of transaction volume, the other sector except banking have failed to maintain their existence in the NEPSE.

Regarding the insignificant response to other sector like manufacturing, finance, hotel and trading economists say that people are more attracted towards short-term return.

This week commercial banks occupy 97.14 % in total transaction, whereas its percentage was 96.61 in the previous week.

This week the Manufacturing and Processing sector obtains 0.41%, hotel sector 0.39% and insurance sector 0.34%. The percentage of finance sector in the total transaction is 1.07%. The trading sector obtains 0.64 % The other sector has 0.01% in the transaction.

Among the companies having all five days of transaction in the weekend were Nepal Arab Bank Ltd. ( Rs1,340-1,400), Nepal SBI Bank Ltd. (Rs1112-1165), Nepal Bangladesh Bank (Rs 1,408-1502), Everest Bank (Rs 850) Bank of Kathmandu (Rs910-998). NIC Bank (Rs530-550).

The other companies having four day transaction were Nepal Bank Ltd. (Rs315-330) Taragaoun Regency (Rs 155-160) Universal Finance (Rs 184-185) Nepal Welfare Company (Rs62-68). The following companies had only one transaction were Botlers Nepal Balaju (Rs 62-68), Botlers Nepal Terai, Nepal Insurance Co.

Out of 52 companies registered, transaction of 41 of them took place in the NEPSE's trading floor.

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