NEPSE index again declines by 3.58 per cent

BY A STAFF REPORTER

Kathmandu, Sept 29:The overall situation of the country’s share market is still volatile. Though some signs of improvement appeared in the previous week’s transactions, the index of Nepal Stock Exchange (NEPSE) again declined by almost 3.58 on Friday in comparison to the Monday’s transactions. The NEPSE index was 279.65 on Monday, that declined to 276.07 on Friday. Decline in transactions of shares belonging to the commercial banks were responsible to bring down the NEPSE index.

However, stock brokers are very optimist that the bearish trend prevailing in the market now will soon turn into bullish if nothing untoward happens. Out of 565 transactions, a total of 54944 shares amounting to Rs. 207,13,524/- were traded in the past five days, whereas a total of 31219 shares equivalent to Rs 206,58,279/- were trade from 820 transactions during the last week. The index had augmented by almost 10 points during the previous week. As the fundamentals of the capital market is strong, this kind of volatility will not have any negative impact in the market, says Navraj Pokhrel, a stock broker. It is a normal phenomenon, he says.

According to the NEPSE, shares of 37 companies out of 51 enlisted for transactions were traded in its trading floor. So far as group-wise transactions are concerned, commercial banks are ahead of other companies. The index of commercial banks declined to 277.17 from 282.59, whereas manufacturing sector remained to 306.85 as in the last week. Similarly hotel sector and trade sector have also remained to 263.37 and 100.14 respectively. The index of Insurance and Finance Sector declined to 313.82 and other sector has declined to 158.39 from 167.52

In total banking sector occupies 54.87 per cent transactions, manufacturing sector occupies 6.47, hotel sector 3.05, trade sector covers 6.42, insurance sector 2.04, finance sector 27.75 per cent and other sectors cover only 0.09 per cent.

In view of stock market analysts, the share market will gradually take its shape. It is a good sign, they say.

As per the frequency of buying and selling of shares in the trading floor, a total of 90 shares were purchased and 96 shares were sold each day. There were significant differences in the buying and selling prices of shares.

Among the companies having the largest transactions was Nepal Industrial and Commercial Bank. The number of transactions of NICB was 85. In terms of share transaction and number of shares being purchased and sold, Universal Finance and Capital Markets Company Limited was ahead of other companies.

A total of 15467 share transactions equivalent of Rs 27,96,610 that belong to Universal Finance and Capital Markets Company took place at the trading floor during the week.

The NEPSE trading floor remained open from Monday to Friday.

Among the companies having transactions throughout the week were Nepal Arab Bank Limited ( remains to Rs 890 per share), Nepal Indosuez Bank ( Rs965-900), Nepal Bangladesh Bank Ltd. (Rs 921-880), Bank of Kathmandu (Rs 386-381), Nepal Industrial and Commercial Bank ( Rs 330-320), Nepal Merchant Banking and Finance Ltd (Rs 249-236), Lumbini Finance and Leasing (Rs 211-206). Similarly, companies having transactions for four days were Nepal Bank Ltd. ( Rs 300-295), Standard Chartered Bank Ltd ( Rs 1800- 1750), Everest Bank (630-610), Nepal Lever Ltd. ( Rs 1800), Himalayan Bank (Rs 1201-1200), Ace Finance Ltd ( Rs 480- 500), Universal Finance (Rs 170-180) and Siddartha Finance Ltd (Rs 164-166).

And Himalayan General Insurance, Annapurna Finance, Everest Insurance, Narayani Finance Ltd. and Gorkha Finance Ltd. had the transaction for only one day.

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