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Nepse Index Gained 92 Points Last Week Daily Average Turnover Rises 33 Percent

  3 min 19 sec to read

 
--By Sanjeev Sharma
 
Nepal Stock Exchange (Nepse) index declined on Sunday by 9.51 points, indicating that the benchmark index of country’s capital market is making corrections after continuous rise of four weeks. On the first day of weekly trading, Nepse settled down at 796.14 points, retreating from last Friday’s closing of 805.65 points. On Sunday, a total of 1.99 million shares were traded through 4,220 transactions on Nepse with the total turnover recorded at Rs 771.67 million. The total market capitalization reached Rs 807 billion on the domestic stock market.  The Hydropower sub-index was seen as the biggest loser with 40.06 points. Insurance sub-index emerged as the biggest gainer (31.11 points).  The Banking sub-index also lost its footing (17.64 points) followed by Finance (8.62 points) and ‘Others’ (2.35 points). Meanwhile, sub-indices of Development Banks and Hotels gained 7.98 points and 13.27 points respectively.  
 
Nepse continued its winning streak last week as the benchmark index again witnessed double-digit gain. The index, which stopped at 713.92 points previous week, surged 91.73 points to reach a record high level of 805.65 points on Friday. Meanwhile, the daily average transaction amount at the index also went up by 32.75 per cent. The daily average transaction amount was recorded at Rs 526.70 million last week against Rs 396.70 million of previous week. 
 
Over the period of 15th December to 19th December, the number of trading at Nepse index totaled to 9,800 with 507.12 million shares worth Rs 2.10 billion being sold in the stock market. Last week, transaction volume increased by 6.19 per cent, compared to the previous week. The relatively small increment in transaction amount, however, was overshadowed by sharp rise in average transaction in Nepse which opened for four trading days last week.   
 
According to the turnover, shares of the Nepal Bangladesh bank topped the index. Meanwhile, Siddhartha Growth Scheme 1 reached the top spot in terms of the number of units being transacted for the week. Nepal Telecom maintained its top spot in terms of market capitalization.  
 
Nepse index, on the first day (Sunday) rose by 2.71 points to settle at 733.25 followed by the second day (Monday) gain of 5.18 points to close at 771.2. On Tuesday, the benchmark index did not resume its trading due to the public holiday. The surge in Nepse continued as it rose by 4.62 points on Wednesday to settle at record high level of 806.82. It was the best performance of the benchmark index since November 13, 2008 when Nepse reached 806.9 points. However, on the last day of weekly trading (Thursday), NEPSE shed 1.17 points to close at 805.65. As many analysts including the stock market officials and regulators warned the investors about vulnerabilities posed by the unnatural surge, the index was forced to made marginal correction. According to them, the continuous rise in Nepse after the second CA elections does not match ground realities and basic fundamentals of the market.  
 
Share trading of most of the trading sub-groups increased during the week. Hydropower sub-group was the biggest gainer with a rise of 148 points. Previous week’s biggest loser, the insurance sector gained traction this week as the sub-group achieved 107.93 points. Similarly, the sub-groups of commercial banks and hotel gained 92.39 points and 75.86 points respectively. Likewise, the ‘Other’ sub-group gained 56.38 points followed by Development Bank (18.09 points) and Finance Companies (13.47 points). The Sensitive Index which represents the share trading of blue chip stocks belonging to class ‘A’ listed companies went up by 17.14 points. Manufacturing and Trading sub-group remained same as earlier week. 
 
Shares of 130 companies were transacted during the week. 97 companies observed a gain, while shares price of 9 companies declined last week. Shares price of 24 companies remained unchanged over the period.
 
Index

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