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Nepse’s Bull Run Looses Steam

  3 min 31 sec to read

 
--By Sanjeev Sharma
 
Nepal Stock Exchange Limited (Nepse) index, the barometer of country’s capital market dropped by almost 7.57 points on Sunday, the first trading day of the week. The bench mark index, which closed at 787.36 on Thursday-- the last trading day of previous week settled at 779.79 points on Sunday. Following the Nepse, Sensitive index representing class ‘A’ listed companies in the secondary market, loses 2.07 points to settle at 174.73. 
 
The fall in Nepse was attributed by decrease in all sub-indices traded in the day. Insurance sub-index was the biggest loser with a fall of 71.19 points (3.31%). Similarly, the sub-indices of Hotel, Commercial banks and Hydropower fell by 28.46 points, 6.11 points and 17.91 points respectively. The ‘Other’ sub-index lost (11.75 points) followed by Finance sub-index (0.21 points) and development Banks (0.47 points).  
 Sunday total 991,476 units of share of 108 companies were traded through 3,138 transactions, which worth Rs. 402.81 million’s turnover. The total market capitalization was registered at Rs 792.44 billion.
 
Corrected by 8 points Last Week
Snapping 6 weeks of straight gains, Nepal Stock Exchange (Nepse) index made correction of 8 points last week. Nepse, retreated back from 805.65 points of previous week’s closing to close at 787.36 points last week. As the Governor of Nepal Rastra Bank (NRB), Dr Yubaraj Khatowoda warns investors about the risks posed by ‘stock market bubble’; the benchmark index slips from its near five-year high level. Similarly, the profit booking strategy of exuberant investors also contributed to Nepse’s correction.    
 
For the week ending 27th December, the number of transaction at Nepse totaled to 15,000 with bought and sold of 537.30 million units of shares worth Rs 2.27 billion in the stock market. In the mean time weekly turnover increased by 7.85 per cent, compared to the previous week. Likewise, the number of transaction and number of share units went up by 53.01 per cent and 7.45 per cent respectively for the week. 
 
According to the weekly turnover, shares of the Nepal Bank Limited reached the top spot in the market. The bank also climbed to no 1 spot in terms of the number of units of share being transacted for the week. Nepal Telecom, meanwhile, maintained its top spot in terms of market capitalization for the week.  
 
On the first day (Sunday), Nepse index, edged down by 10.46 points to settle at 795.19 points. The second day (Monday) of the weekly trading marked another decline, with the Nepse losing 26.47 points to close at 768.72. On the third day (Tuesday), the index tested the immediate support at 753, however, bounced back and rose by 8.86 points to close at 777.58. On Wednesday, the stock market was closed due to Christmas holiday. The last day of the weekly trading (Thursday) Nepse index attempted to break a resistant at 806. But, it could not succeed and returned back. However, for the day Nepse gained 10.46 points to settle at 787.36. 
 
Last week marked the volatility of share prices of most of the sub-indices. Insurance sub-index was the biggest gainer with a rise of 93.69 points. This is the second consecutive weekly gain for the Insurance sub-index. Similarly, the sub-index of finance companies and development banks gained 2.91 points and 0.59 points respectively. The ‘Other’ sub-index was the biggest loser (21.31 points) for the week followed by Banking sub-index (13.97 points), Hydropower (10.14 points) and Hotel (8.32 points).  
 
The Sensitive Index of Nepse, which represents the share trading of class ‘A’ listed companies (most of which are considered as blue chip stocks) went down by 2.47 points. Manufacturing sub-index remained same as earlier weeks. 
 
Although shares of 139 companies were transacted during the week, 55 companies observed a gain, while shares price of 56 companies declined last week. Shares price of 28 companies remained unchanged over the period.
 
Nepse Index

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