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Quick Selling Affects Trading At Nepali Stock Market NEPSE Went Up 11.43 Points Last Week

  2 min 54 sec to read

 
--By Sanjeev Sharma
 
Nepal Stock Exchange (Nepse), the benchmark Index of country’s capital market increased by almost 20 points on Sunday, the first trading day of the week. Nepse settled at 733.25, 2.71 per cent higher than the last week’s closing of 713.92. All the sub-indices except Hotels listed under the Nepse platform registered  a gain. The Banking sub-index was the highest gainer (26.35 points), followed by Hydropower, Development Banks, Insurance and ‘Others’. Hotels sub-index was the biggest loser (8.74 points). The total turnover of the day was Rs. 560 million and the total market capitalization registered at Rs 744 billion.        
 
Nepse Index gained 11.43 points last week (Dec 8 to 12). Nepse, which opened at 702.49 points on the week’s first day (Sunday), closed its trading at 713.92 points on Friday. By analyzing the stock market’s recent movement, analysts say that the quick profit booking strategy of investors is likely to cause volatility in the coming days. They predict that Nepse trading may edge up for some days while it may slide down again for some days. According to them, many investors are currently busy in selling the shares, which they have bought recently.  
 
Over the period of 8th December to 13th December, the number of trading at Nepse totaled to 14,283 with 641.5 million shares worth Rs 1.98 billion of turnover. Last week, the transaction volume increased by 17.31 per cent compared to the previous week. However, the number of transaction declined by 4.03 whereas the number of shares bought and sold came down by 4.72 per cent. The increase in transaction volume followed by the decrease in number of shares and transactions indicates the imbalance between demand and supply of shares in the stock market. 
 
In terms of turnover and the numbers of shares bought and sold, Kist Bank topped the week. Nepal Telecom, meanwhile, maintained its top spot in terms of market capitalization.  
 
Nepse index which recorded a 4-year high on 6th December, corrected on the first day (Sunday) closing down 4.92 points at 702.49. However, the index surged on the second day (Monday) by 1.67 points closing at 704.16. On Tuesday, the benchmark index declined by 4.32 points closing at 699.84. The volatility continued in the index as it rose by 10.91 points on Wednesday to settle at 710.75. On the last day of the week (Thursday), NEPSE again gained 3.71 points to close at 713.92.  
 
Most of the sub-groups of the Nepse witnessed a shrink in their share trading during the week. Commercial banks and finance companies were the only gainers who stood firmly on the index. The sub-indices of commercial banks and finance companies gained 31 and 5.68 points, respectively. Meanwhile, the other sub-indices recorded a decline. Insurance sub-index was the biggest looser---down by 61.33 points--- followed by Hotel (58.25 points), ‘Others’ (8.22 points) Hydropower (4.75 points), Development Bank (2.27 points). Also, the Sensitive Index which represents the class ‘A’ listed companies of Nepse came down by 2.76 points. Manufacturing and Trading sub-indices remained unchanged.  
 
A total of 71 companies out of 148 listed companies observed a gain, while the price of 58 companies declined during the week. The price of 19 companies remained unchanged.
 
Nepse Index

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