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Nepse Begins The Week With A Slow Start

  3 min 28 sec to read

 
--By TC Correspondent
 
Nepal Stock Exchange Limited (Nepse) Index started its weekly trading in a sluggish manner on Sunday. The benchmark index of the country’s capital market, which closed at 785.70 points on the last trading day of previous week settled at 783.68 points. The index fell shy to its earlier gains to edge down 2.02 points on Sunday. According to analysts, weak performance of shares of banks and finance companies contributed to the slow start of Nepse. Often termed as the ‘heavyweight’ groups, sub-indices of both commercial banks and insurance companies fell on Sunday, weighing down on the overall performance of the stock market.
 
On Sunday, a total of 1,018,870 units of shares of 127 companies were traded in the stock market. The turnover was recorded at Rs. 365.98 million throughout 2625 transactions. The total market capitalization, meanwhile, was registered at Rs 797.17 billion. 
 
Most of the sub-indices observed gain on Sunday. Hydropower sub-index was the highest gainer (11.04 points) followed by Finance (4.64 points), Hotels (2.47 points), ‘Others’ (1.17 points) and Development Bank (0.63 points).  Meanwhile, Banking sub-index was the biggest loser for the day (5.01 points) which was followed by Insurance (2.46 points). For the day, Sensitive index representing class ‘A’ listed companies in the secondary market, loss 0.51 points to close at 173.32.
 
Weekly Indices
 
Nepse down almost 10 points Last Week
After two-weeks of consecutive gains, Nepse index marked decline of 9.56 points last week. The benchmark index, which resumed its weekly trading on the first day (Sunday) at 794.64 points settled at 785.7 points on (Thursday). Analysts say that the decline in the stock market index was attributed to the declaration and distribution of dividends of the listed companies. “As most of the companies listed in the country’s stock market have declared and distributed cash dividends and bonus shares, it is obvious that price of the shares to correct,” said one analyst. According to stock market fundamentals, it is natural to have some degree of correction after the distribution of bonus shares and dividends. As the number of shares increases, the net worth per share decreases. Similarly, he opines that despite the weakening of ‘Poush-Masanta effect’, many investors are still reluctant to invest to their full capacity at low prices. 
 
For the period of 19th to 23rd January, a total of 4.47 million units shares worth Rs 1.99 billion were traded in the stock market. The turnover increased by 28.57 per cent whereas, unit of shares traded rose 41.49 per cent, compared to the previous week. Similarly, the number of transactions went up 31.6 percent which was totaled at 12,914. 
 
Nepal Bank Limited reached the top spot in terms of weekly turnover. Likewise, the bank also climbed to the number one spot in terms number of share units being transacted for the week. In terms of market capitalization, Nepal Telecom maintained its top position as earlier weeks. 
 
Out of nine sub-indices traded in the week, five saw gain and three witnessed loss. For the week, Hydropower sub-index was the biggest gainer with 38.53 points followed by Development Bank (15.28 points), Manufacturing and Processing (10.38 points), Finance (8.15 points) and Trading (0.76 points).   
 
The Hotels sub-index was the biggest weekly loser with 40.97 points. Similarly, Insurance sub-index was seen as the second biggest loser (21.87 points) whereas, Banking slide down by 21.64 points. Meanwhile, ‘Others’ sub-index remained unchanged. For the week, The Sensitive Index representing the share trading of blue chip stocks belonging to class ‘A’ listed companies dipped by 2.5 points. 
 
Shares of 143 companies were transacted in the stock market last week. Out of them, share price of 76 companies observed gain while, 51 saw decline. Share prices of 16 companies remained unchanged over the period.

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