Low activities slack stock market

By A Staff Reporter

KATHMANDU, Aug 10: The beginning of the new fiscal year 2059/60 has failed to rejuvenate investors' zeal towards the stock market. It is slack owing to lack of new provisions in the Fiscal Ordinance 2059.

Although the business community accuses the government of overlooking the capital market in the budget, the main reasons for low transactions could be political instability and security problems, say officials at Nepal Rastra Bank.

Stockbrokers are, however, optimistic that the market will go up after the general election on November 13. "As soon as peace and security are restored business activities will go up", says Navraj Pokhrel, a stock dealer. He says the stock market that now has a bearish trend will change into bullish, if the economy is revived.

According to the Nepal Stock Exchange, the response of investors in the share market is very negative. Sellers overwhelm the stock market at the moment. The number of people wanting to sell their share is on the rise.

24,805 shares amounting to Rs 74,85,329/- were traded through 731 transactions this week, compared to 1047 shares amounting to Rs 71,91,610/- were traded in the previous week.
There had been a slight (less than one point) decline in the NEPSE index last week, whereas the index has gone up by 1.19 points this week. The overall trend of the NEPSE is still not satisfactory. "It is passive", says Arjun Khaniya, a stock market analyst.

According to the NEPSE weekly report, the index this time increased by 1.19 points. The NEPSE trading floor opened with 223.4 on Monday (August 5) and closed at 224.03 on Friday.

In the overall transactions, the index of the banking sector has increased to 215.97 from 214.70,whereas the index of the manufacturing sector experienced a decline. Similarly, the index of hotel sector also declined from 216.13 to 215.74. The index of the trading sector has remained to 96.95.

The insurance sector experienced a considerable downfall. It declined to 296.76 from 307.71. The index of finance sector has also declined to 261 from 259.53. However the index of development bank increased to 266.16 from 264.04.

In group-wise transaction, the banking sector has occupied 72.55 per cent and manufacturing sector has covered only 0.18 per cent. The hotel sector has occupied 1.38 per cent, insurance sector has covered 5.78 per cent and trading sector has covered 0.04 per cent. The finance sector and development bank have covered 7.96 and 12.07 per cent respectively. The NEPSE recorded 25 prices in the sales side and 20 prices in the sales side.

In terms of the number of transactions and the number of share, the Development Credit Bank Ltd recorded 516 transactions - the highest in the week. However, in terms of amount the Standard Chartered Bank was ahead of other companies by recording Rs 15,50418/-.

The NEPSE trading floor remained open for five days. Among the companies that remained open for transaction for all five days were Standard Chartered Bank (Rs 1615-1650), Nepal Bangladesh Bank (Rs 485), Everest Bank (Rs 408), Bank of Kathmandu (Rs 259-260), NIC Bank (Rs 259-246), Nepal Bikas Bank (Rs 157-153), Nepal Merchant Bank (Rs 220-222) and Development Credit Bank Ltd (Rs 153-162).

The companies that remained open for four days were - Nepal Bank Ltd (Rs 320-310), Nepal Arab Bank (Rs 715-730), Premier Finance Co. and Sagarmatha Insurance Co.

Salt Trading Company, Nepal Insurance, Nepal Finance and Saving Co. National Finance Company, Citizen Investment Fund, Lalitpur Finance and Nepal Lube Oil recorded transaction for only one day.
Out of 57 companies, the transaction of 45 took place in the NEPSE trading floor this week.

An agreement between the NEPSE and the Union Finance was made to trade 240,000 shares. The transaction of shares will begin from the August 12. Mukunda Nath Dhungel Chief of the NEPSE and Suresh Malla of the Union Finance signed the agreement on behalf of their respective organisations.