Sunday, July 28, 2013

Investors confidence pushes Nepse up 7.55 points

Along with northbound share prices, transaction volume in the stock exchange surged by 84 per cent as the investors are betting for the better days to come, this week –July 21 to 25.

The benchmark index rose by 7.55 points as the more investors are coming in with expectation of better return. The transaction volume that stood at Rs 393.5 million last week surged to Rs 724.6 as of this week.

The surge in transaction volume was aided by increased number of transactions as more investors are trading shares. Number of transactions increased to 8254 this week while last week it stood at 4225.

Likewise, numbers of shares traded also increased to 2.5 million units from 1.2 million units traded last week.

“There is expectation for better dividend from the companies based on third quarter report and last quarter also was good,” said Raj Kumar Timilsina, president of Nepal Investor Forum. “Increased volume and transaction indicate share price will be up soon,” he added.

On Sunday afternoon, the market that had opened at 521.60 points closed at 535.80 points. However, on the following days, index inched back but transaction volume steadily increased as more trading was taking place. At the end of the week index rested at 529.15 points.

Among total transactions blue chip stocks belonging to Class ‘A’ companies’ share trading comprised of 52.27 per cent worth Rs 378.7 million, this week. Sensitive index, which measures the performance of blue chip stocks, went up by 1.7 points.

Likewise, float index that shows the performance of actual shares traded increased by 0.59 points to 36.93 points.

This week except others, hotels subgroups and rest of the subgroups ended up registering gains.

Insurance became biggest earner of the week that gained 84.3 points. Major insurance companies such as National Life Insurance earned Rs 118 per unit share, LIC Nepal gained more than Rs 160 per unit and Sagarmatha Insurance’s share price appreciated by Rs 109 per unit.

Hydropower Subgroup also gained 37.79 points as Chilime Hydropower Company’s share prices increased by Rs 37 per unit and Butwal Power Company also gained Rs 49 on a unit share.

Banking gained 8.6 points as major banks’ share prices rose. NIC Asia Bank’s share price this week increased by Rs 30, Standard Chartered Bank and Everest Bank gained Rs 80 and Rs 63 per unit respectively.

Likewise, finance and development banks gained 5.32 points and 0.75 points. Manufacturing and trading subgroups gained 2.87 points and 5.19 points, respectively.

Others subgroup ended up in red due to loss of 12.92 points as Nepal Telecom’s shares slumped by Rs 11. Soaltee Hotel’s share price also went down by Rs five. Hotels subgroup registered loss of 5.75 points.

This week Everest Bank topped the charts in terms of transaction volume with trading of shares worth Rs 92.7 million. Nabil Balanced Fund I topped in terms of numbers of shares traded with trading of 508,893 units. NIC Asia Bank was forerunner in number of transaction with 865 transactions.The top five companies this week in terms of transaction volume are Everest Bank (Rs 92.74 million), NIC Asia Bank (Rs 91.46 million), Chilime Hydropower Company (Rs 58.24 million), Nepal Investment Bank (Rs 35.27 million) and NCC Bank (Rs 25.73 million).
src : THT