Nepal Stock Exchange (Nepse) jumped 25.87 points to close at 1,224.41 points last week, with the investors buoyed by the possibility that Nepal Rastra Bank could revise the margin threshold in loans against shares through the monetary policy. The central bank is likely to announce the monetary policy this week.
The market that opened at 1,198.54 points on Sunday slipped 14.01 points to close at 1,184.53 points. Also on Monday, the market responded negatively falling 4.82 points in its index and closed at 1,179.71 points.
The market, however, posted green on Tuesday, Wednesday and Thursday through gains of 0.65 points, 8.04 points and 36.01 points respectively. Consequently, the market closed 2.15 percent up on Nepse in the overall trading days.
Stockbrokers attributed the recovery in Nepse to Prime Minister KP Sharma Oli’s expressing his concern over the declining market index while addressing the federal parliament. “In addition, rumours that the central bank will be revising the threshold margin in loan against shares to 60-65 percent from the existing 50 percent also attracted a large number of investors, boosting the share transactions,” said a stockbroker requesting anonymity.
The sensitive index that measures the performance of Group ‘A’ companies also went up 5.37 points to close at 257.46 points, with the majority of the trading groups including commercial banks posting gains during the review period.
Along with a fall in the market index, the average value of the shares listed on stock market also increased by Rs30.99 billion, as the market capitalisation rose up to Rs1,448.37 billion from Rs1,417.38 billion over the period.
Except manufacturing, the sub-indices of the rest of the nine trading groups went up last week. The insurance companies were the largest gainers, making up 244.15 points to close at 6,264.73 points.
Hotels gained 69.58 points, microfinance 58.16 points, development bank 34.61 points and hydropower 25.84 points. Likewise, index of commercial banks increased by 17.75 points on Nepse, ‘others’ by 8.63 points and finance companies by 2.61 points.
Manufacturing was the only loser last week and the group’s index fell by 16.16 points to close at 2,252.06 points. The index of trading remained stable at 197.54 points throughout the trading days.
Of the individual companies, National Life Insurance Company with transactions worth Rs74.23 million led the segment. Similarly, Prime Commercial Bank witnessed the turnover of its shares worth Rs43.26 million. Nepal Investment Bank Limited, Chhimek Laghubitta Bittiya Sanstha and promoters’ shares of Nabil Bank Limited completed the top five list for the largest transaction amount.
Likewise, Prime Commercial Bank led in terms of the number of traded shares, with a total of 155,000 units changing hands over the period. Stocks of 184 listed companies were traded in the week. Along with a rise in market index, the transaction amount also went up 28.39 percent to Rs1.33 billion. The number of traded shares also increased to 4,254,550 units from 3,679,600 units.
Right Shares/Bonus Shares
Company Type Units
Om Development Bank Bonus 3,781,073
Suryodaya Laghubitta Bittiya Sanstha Right 280,000
Dev Bikas Bank Right 6,533,108.59
Manjushree Finance Limited Right 362,190
Karnali Development Bank Bonus 120,800
RMDC Laghubitta Bittiya Sanstha Bonus 346,060