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Nepse On Bullish Trend With Mid-July Effect

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Nepse On Bullish Trend With Mid-July Effect
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By Rashesh Vaidya

Nepse index increased by 12.09 points during previous week. It had closed 494.45 on Sunday, 7th July (the first trading day of the week) and reached 506.53 at the close of Thursday, 11th July (the last trading day of the week) showing the bullish trend. The market floor was open for five days.In the week, the insurance company sub-index increased the highest by 28.80 points closing at 971.28 points. That was followed by the ‘others’ sector sub-index which increased by 23.49 points. As the market capitalization of Nepal Telecom increased heavily during the previous week, the ‘others’ sub-index saw a huge increment. The share price of Nepal Telecom increased by Rs 20 (closing at Rs 550) from a trading of 177,120 shares during the week.

Similarly, increment in the share prices of Butwal Power Company and Chilime Hydropower Company by Rs 5 and Re 1 respectively caused increase in hydro-power sub-index. Decline in manufacturing and processing sub-index by 9.91 points during the week was due to the decline in share price of Unilever Nepal Ltd by Rs 200 per share closing at Rs 9800.

As the closing of the fiscal year was coming nearer, investors are attracted to generate the shares of banks and financial institutions (BFIs) from which they expect dividends. On-going merger trend among the BFIs and the historical trend of high return during Mid-July (Mid-July Effect) from the Nepali stock market are also seen boosting the Nepali investors’ confidence during the week.

Shares of 119 companies were traded at Nepse during the week through 5,412 transactions amounting to Rs 446,668,000. The share price of 68 companies increased while of 27 companies declined and 24 companies remained unchanged. The transaction amount of the week is 17.9 percent higher than that of earlier week. The total number of scrips traded was1,819,991 which is higher by 66,457 scrips than that of earlier week.

Chilime Hydropower Company topped the list in terms of transaction amount (Rs 641,020,000). Nabil Balanced Fund topped in number of scrips traded during the week. Altogether 395,011 scrips of the fund were traded during the week. Commerz and Trust Bank Nepal Ltd was at the top on the basis of the number of transactions (531).

Similarly, a total of 920,000 right shares of Sewa Bikas Bank, and 2,250,000 ordinary shares of NLG Insurance, 40,000bonus shares of Seti Finance and 400,000 debentures of Bank of Kathmandu were listed during the week.


Nepse on Sunday

Nepse Index closed at 511.07 points on Sunday (July 14). The index increased by 4.62 points from the Thursday (July 11) close. All the sectors sub-indices saw increment during the day. Hydro-power sub-index increased the highest by 23.85 points closing at 1065.28 points. Total of 225,296 shares were traded from 817 transactions during the day. Similarly, trading on stock symbol “NICA” has started after successful merger between NIC Bank Ltd and Bank of Asia Nepal Ltd forming NIC Asia Bank.
 

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