A surge in Nepal Telecom’s share prices and end-of-the-year scrambling by investors brought the capital market back from its stupor as the market zoomed past 500 points this week — July 7 to 11.
The benchmark index jumped by 12.86 points as share prices increased.
The price of Nepal Telecom (NT)’s shares increased by Rs 20 per unit that propelled the benchmark index up. NT comprises almost 24 per cent of total market capitalisation of Nepal Stock Exchange (Nepse).
Moreover, since investors have to make principal and interest payment to their financial institutions at the end of the fiscal year so as to maintain their margin, they tend to push share prices up. When share prices go below that rate at which the investor has pledged the shares for a loan, the deficit amount has to be furnished before the end of each quarter. So at the end of each quarter, share prices mostly surge.
On Sunday afternoon, the market that had opened at 493.67 points, closed at 494.45 points. However, from the next day the index rocketed past 500 points after staying below 500 points for one and a half months. In the next two days, the index kept bobbing over 505 points. On the last day of the week, the index inched up to 506.53 points.
Along with the increment in share prices, transaction volume also went up by 17.90 per cent. Nepse’s trading floor observed trading of 1.8 million unit shares worth Rs 446.6 million of 119 companies in 5412 transactions. Last week, transactions worth Rs 378.8 million had taken place.
Share trading of blue chip stocks belonging to class ‘A’ companies comprised of 61.21 per cent of total transactions amounting to Rs 273.3 million this week. The sensitive index, which measures the performance of blue chip stocks, declined by 3.45 points. Likewise, the float index that shows the performance of actual shares traded went down by 0.58 points to 35.76 points.
This week, except for trading, hotels and manufacturing subgroups, the rest of the subgroups earned a few points. Major insurance companies such as National Life Insurance and Nepal Life Insurance earned Rs 14 per unit and Rs 80 per unit, respectively, pushing the subgroup up by 35.84 points.
Following NT’s surge, others subgroup also increased by 23 points.
Banking gained 13.99 points as share prices of major banks rose. Nepal Investment Bank earned Rs 51 per unit and Everest Bank gained Rs 40 per unit among others, this week. Likewise, finance companies and development banks gained 0.93 points and 5.2 points, respectively.
Hotels, manufacturing and trading subgroups went down by 12.24 points, 9.34 points and 7.69 points, respectively. Chilime Hydropower gained Rs 25 per unit share and Arun Valley Hydropower gained Rs five per unit, pushing the hydro subgroup index up by 13.02 points.
This week too, Chilime Hydropower topped the charts in terms of transaction volume with trading of shares worth Rs 64.1 million. Nabil Balanced Fund I topped in terms of number of shares traded with trading of 395,011 units. Commerz and Trust Bank Nepal was the forerunner in number of transactions with 531 transactions.
This week, the top five companies in terms of turnover were Chilime Hydropower (Rs 64.12 million), Everest Bank (Rs 41.36 million), Nepal Investment Bank (Rs 31.20 million), National Life Insurance Company (Rs 24.6 million) and Machhapuchchhre Bank (Rs 22.48 million).
src THT
The benchmark index jumped by 12.86 points as share prices increased.
The price of Nepal Telecom (NT)’s shares increased by Rs 20 per unit that propelled the benchmark index up. NT comprises almost 24 per cent of total market capitalisation of Nepal Stock Exchange (Nepse).
Moreover, since investors have to make principal and interest payment to their financial institutions at the end of the fiscal year so as to maintain their margin, they tend to push share prices up. When share prices go below that rate at which the investor has pledged the shares for a loan, the deficit amount has to be furnished before the end of each quarter. So at the end of each quarter, share prices mostly surge.
On Sunday afternoon, the market that had opened at 493.67 points, closed at 494.45 points. However, from the next day the index rocketed past 500 points after staying below 500 points for one and a half months. In the next two days, the index kept bobbing over 505 points. On the last day of the week, the index inched up to 506.53 points.
Along with the increment in share prices, transaction volume also went up by 17.90 per cent. Nepse’s trading floor observed trading of 1.8 million unit shares worth Rs 446.6 million of 119 companies in 5412 transactions. Last week, transactions worth Rs 378.8 million had taken place.
Share trading of blue chip stocks belonging to class ‘A’ companies comprised of 61.21 per cent of total transactions amounting to Rs 273.3 million this week. The sensitive index, which measures the performance of blue chip stocks, declined by 3.45 points. Likewise, the float index that shows the performance of actual shares traded went down by 0.58 points to 35.76 points.
This week, except for trading, hotels and manufacturing subgroups, the rest of the subgroups earned a few points. Major insurance companies such as National Life Insurance and Nepal Life Insurance earned Rs 14 per unit and Rs 80 per unit, respectively, pushing the subgroup up by 35.84 points.
Following NT’s surge, others subgroup also increased by 23 points.
Banking gained 13.99 points as share prices of major banks rose. Nepal Investment Bank earned Rs 51 per unit and Everest Bank gained Rs 40 per unit among others, this week. Likewise, finance companies and development banks gained 0.93 points and 5.2 points, respectively.
Hotels, manufacturing and trading subgroups went down by 12.24 points, 9.34 points and 7.69 points, respectively. Chilime Hydropower gained Rs 25 per unit share and Arun Valley Hydropower gained Rs five per unit, pushing the hydro subgroup index up by 13.02 points.
This week too, Chilime Hydropower topped the charts in terms of transaction volume with trading of shares worth Rs 64.1 million. Nabil Balanced Fund I topped in terms of number of shares traded with trading of 395,011 units. Commerz and Trust Bank Nepal was the forerunner in number of transactions with 531 transactions.
This week, the top five companies in terms of turnover were Chilime Hydropower (Rs 64.12 million), Everest Bank (Rs 41.36 million), Nepal Investment Bank (Rs 31.20 million), National Life Insurance Company (Rs 24.6 million) and Machhapuchchhre Bank (Rs 22.48 million).
src THT
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