NEPSE Index up by 7.86
Volatility of banking sectors reflects uncertainty

By A Staff Reporter

Kathmandu, April 6:The stock market has witnessed rapid fluctuations for the last couple of months. The may be due to unstable money market, but stock market analysts believe that non- economic factors are more responsible for the rise and fall in the NEPSE index.

Last week the NEPSE index had spiraled down by 14.93 point, however, there has been an increase in the index by 7.86 point during the last five days. The rise in the NEPSE index is mainly due to the rise in the transaction of shares of the banking sector.

A total of 22989 shares amounting to Rs 82,04,903/- were traded through 661 transactions. The total amount of shares traded in the NEPSE also includes, 350 preferential shares of the Taragaon Regency Hotel Ltd. 350 preferential shares of the Taragaon Regency were traded in Rs 24,850/- through two transactions.

The index, which was 201.06 on Monday, climbed to 208.92 on Friday.

Having read the group transaction, the index of banking sector (commercial banks) has made a significant jump. The index has gone up to 191.51 from 178.56. Similarly the manufacturing sector has also witnessed an increase. Its index has moved to 281.21 from 279.88.

The index of the hotel sector has remained constant to 214.88 and trading sector has also remained to 103.60 like in the past.

The index of development bank has slightly gone up. It has scaled up to 282.05 from 280.13. Similarly there is a slight increase in the index of finance sector. However, the index of insurance has declined to 265.94 from 277.20.

Out of total transactions, the commercial banks have occupied 82.63 per cent. Similarly manufacturing and hotel sectors have occupied 1.22 per cent and 1.73 per cent respectively. Likewise finance sector has occupied 10.65 per cent and development bank covers 1.83 per cent and other sectors has occupied only 0.10. However trading sector has failed to record any transaction.

Around 18 changes in the price of shares took place in purchase side and 15 in the sales of shares in the trading floor.

In terms of the number of transactions the Bank of Kathmandu (BoK) was ahead of other companies in the NEPSE. The number of transaction of BoK was 92 and the number of shares traded was 4625. However, in terms of rupees the Standard Chartered Bank was far ahead of other. Its total transaction was Rs 14,09,836/-

The NEPSE’s trading floor remained opened for five days. Among the companies having transactions for five days were Nabil Bank (Rs 570-635), Nepal Indosuez Bank (Rs 630-695), Standard Chartered Bank (Rs 1255-1295), Nepal Bangladesh Bank (Rs 410-50), Everest Bank (Rs 375-401), BoK (Rs 260-276), Nepal Dev. Bank (Rs 162-166), Lumbini Finance (Rs 160-169) and Nepal Bangladesh Finance (Rs 136-140).

Similarly among the companies having four-day transactions were Himalayn Bank Ltd., Nepal SBI Bank, NIC Bank and Lumbini Finance.

According to NEPSE, Bottlers Nepal Terai, Rastriya Bima Sansthan, Soaltee Hotels Ltd., National Life and General Insurance Co. Ltd, National Finance, Everest Insurance People’s Finacne and Pokhara Finance had transaction for only one day.

Out of 55 companies registered, only 39 of them had transactions in the NEPSE trading floor.

Air services demanded

By Our Correspondent

Bhairahawa: Businessmen of Dolpa, Humla, Jumla and other western parts of the country have demanded the resumption of air services to and from Bhairahawa.

Air services to those areas have recently been discontinued due to several reasons, security being the major one.

Air is the only link to outside from these Himalayan and mountainous regions for transportation, bringing in food and other goods and for the export of carpet and herbs from those places. Those areas were serviced by air since the last 10 years.

Businessmen said that the stoppage of air services between Bhairahawa has caused severe problem in transportation of people and goods.

Ramesh Acharya, resident of Dolpa, says that he lives in Butwal for 10 months a year to sell carpet and herbal products and he totally depends on air for the transportation of those goods. "People living in those areas are facing problems due to lack of services services," Acharya said.

Dinesh Prasad Shrestha, chief of the Gautam Buddha Airport at Bhairahawa, says that there is the possibility of air services being resumed. "Many people of the western hilly districts will benefit if the services are resumed."

There are a few flights from Nepalgunj to Dolpa. But the demand is so high and services so irregular that passengers have to wait for weeks to find a seat.

Shrestha says that air services from Bhairahawa to Jomsom can be highly profitable. Many Indians as well as Nepalese pilgrims are interested to visit the popular pilgrimage site of Muktinath. It would also benefit tourists from other countries, who want to go directly to Jomsom from Bhairahawa without going to Kathmandu or Pokhara.