NEPSE index up despite less business

BY A STAFF REPORTER

Kathmandu, Oct. 4: The overall transactions onthe NEPSE trading floor this week has reflected an optimistic trend of the stock market. The NEPSE index as per the transaction has increased by 2.46 point in two days.

Going by the trend, it has been experienced that the stock market is not governed by any economic parameters.

However the stock market according to the NEPSE weekly bulletin is still under the dominance of the commercial banks.

The index of banking sector has slightly declined in comparison to the previous week. The transaction of commercial banks (that was 90.6 per cent in the total transaction) in the previous week (Sept.22-26) dropped to 88.6 per cent this week (Sept. 29-Oct. 3).

The transaction of finance sector has further declined to 3.2 per cent this week. But the manufacturing sector has picked up to 5.04 per cent.

In the stock market, the buyers' response towards finance companies, hotel, insurance, trading and manufacturing, according to experts, is still 'poor.'

Though there was a dramatic rise in the NEPSE transactions some three weeks back, it abruptly came down without any significant change in the micro economic variables.

According to the NEPSE, a total of 32435 amounting to Rs 215,92,222/-were traded through 412 transactions whereas a total of 34566 shares amounting to Rs 247,95,325/- were traded through 697 transactions in the previous week.

The total transaction has declined by Rs 3,203,103/-

Out of 412 transactions, 4300 units (equivalent to Rs 24,620/-) belonging to NCM Mutual Fund were traded.

In terms of transaction, the amount of trade and the number of shares begin traded on the NEPSE trading floor, NIC Bank is still ahead of other companies registered for transaction.

A total of 6670 shares amounting to Rs 400,4190/- belonging to NIC Bank were traded through 97 transactions.

Out of 47 companies registered, transaction of 28 of them did take place in the NEPSE's trading floor this week.

The weekly NEPSE index has witnessed an increase of 2.46 point.

The NEPSE index was 427.76 point at the beginning of transaction in the weekend, which scaled to 430.22 at the end.

On the basis of transaction, the banking sector is far ahead of other organizations in different sectors like-manufacturing & processing, hotel, insurance, finance and trading.

The index of commercial banks in the NEPSE has increased to 500.48 from 496.49

The finance and insurance sector in the index has slightly decreased. It has declined to 325.63 from 325.99

The manufacturing sector, this week has not witnessed any changes .

Similarly the hotel sector this week has increased to 367.54 from 366.81

The trading sector has remained to declined to 119.42.

In group-wise transaction, a total of 18194 shares of commercial banks amounting to Rs 190,73,402/- were traded this week, whereas 21,272 shares amounting to Rs 22324507/- were traded in the previous week.

A total of 3540 shares belonging to the manufacturing and Processing sector were traded for Rs 108,5030/- this week whereas 2096 shares amounting to Rs 123,262/- were traded in the previous week. This sector occupies 5.04 per cent in the total transaction. The manufacturing sector is in the second position after commercial bank.

Similarly, a total of 364 shares of Insurance sector were traded this weekend. The amount was Rs.276,760/ -

The percentage of finance sector in the total transaction is 3.2.

Due to Dashain holidays, the NEPSE trading floor remained opened for two days in the weekend and will remain close for a week.

Among the companies having two days of transaction in the weekend were Nepal Bank Ltd. (Rs 300-307) Nepal Arab Bank Ltd. (Rs 1570-1580), Nepal SBI Bank (Rs 2020-2035) Nepal Bangladesh Bank (Rs 2285-2325), Everest Bank (Rs 1621-1726), Bank of Kathmandu (Rs 1400-1403), NIC Bank (Rs 600-601), Nepal Lever Ltd (Rs 2500), Necon Air (remained at Rs 225) Taragaun Regency Hotels (Rs 175-176), Rastriya Bima Sanstha (Rs 1500), Primier Insurance Co. (Rs 231-235), Kathmandu Finance Co. (Rs 325) and Universal Finance and Co. (Rs 180).

Companies having transactions for a day throughout the weekend, were Harishiddhi Brick and Tile Factory (R 3100/9300), Sri Bhrikuti Paper Nepal (10/15000), Everest Insurance Co (10/4800) Nepal Film Development Company (260/4800) Nepal Finance and Saving Co. (25/15000) and People's Finance (260/3500)

The NEPSE trading floor will remain closed for nine days during the Dashain festival.