Notice (8): Trying to access array offset on value of type null [APP/View/Articles/view.ctp, line 115]
Notice (8): Trying to access array offset on value of type null [APP/View/Articles/view.ctp, line 115]
Notice (8): Trying to access array offset on value of type null [APP/View/Articles/view.ctp, line 116]

Mid-term Monetary Review Creates Sell-off In Stocks

  3 min 11 sec to read

 
--By TC Correspondent
 
In an apparent sign of continuing weakness, Nepal stock Exchange Limited (Nepse) index closed nearly 9.15 points lower on Sunday, the first trading day of the week. Declined in the barometer of country’s capital market is attributed by fall in the majority sub-indices traded in the day. Along the Nepse, sensitive index which represents share trading of class ‘A’ listed companies fell 2.22 points.  
 
Out of total seven sub-index traded Sunday, six were in red. The Insurance sub-index was the biggest loser which fell 40.36 points followed by Hydropower sub-index (16.92) and Banking sub-index (11.99 points). Similarly, sub-indices of ‘Others’, Hotels and Development Banks fell respectively by 4.7 points, 3.58 points and 3.41 points. In the mean time, Finance sub-index was only the gainer of the day which increased 6.89 points. Sunday around 732 thousand units of shares of 125 companies were traded through 2347 transactions, which worth Rs. 300 million as daily turnover.      
 
Weekly Indices
 
Weekly Review
Nepse index fell 20.05 points last week. The benchmark index which was closed on Sunday due to public holiday started its weekly trading on Monday at 825.70 points and settled down at 805.65 points on the last day (Thursday). After witnessing three straight weeks of gains, Nepse, retreated back last week as investors went to secure their gains through profit-booking strategy.
 
Analysts say that the investment in the domestic market lost steam after the central bank in its mid-term review of monetary policy of FY 2013/14 hinted to the tightening of margin lending against share certificates. In recent months, margin lending has become one of the attractive investment tools in the country’s financial sector as the swelling liquidity is leaving the banks without much investment options in real sectors.
 
Similarly, analysts also opine that settlement of political issues regarding the formation of new government has also affected the domestic stock market. Investors were highly encouraged to book their profits that they earned from the stocks that they purchased during post election months. This indicates that the positive impact of new political development by second CA election is fading. 
 
Nepse registered as highest as 811.04 points on the opening day (Monday) and observed lowest level at 800.05 points on Tuesday of the last week. During the last week, 3.69 million units of shares worth Rs 1.19 billion were traded in the stock market through 9,514 transactions. The weekly turnover declined 19.32 per cent while, number of transactions shed 12.98 per cent compared to the previous week. Meanwhile, unit of shares traded rose 3 per cent. Nepal Bank Limited climbed to the top spot in terms of weekly turnover. Similarly, Nabil Balance Fund-1 grabbed the top position in terms of number of share units being transacted for the week. In terms of market capitalization, Nepal Telecom maintained its top spot as earlier weeks.  
 
Most of the trading sub-indices saw declining trend last week. Hotels sub-index was the biggest weekly gainer with 37.37 points followed by Hydropower (21.04 points), Insurance (9.85 points) and Finance (0.13 points).
 
‘Others’ was seen as the biggest weekly loser as the sub-index declined 16.44 points. Sub-indices of development banks and commercial banks, meanwhile, lost 7.37 points and 6.68 points respectively. Sub-indices of Trading, Manufacturing and processing, meanwhile, remained unchanged for the week. Reflecting the declining trend in major sub-indices, Sensitive Index representing the share trading of blue chip stocks belonging to class ‘A’ listed companies also fell 1.63 points.  

Deprecated (16384): Using key `action` is deprecated, use `url` directly instead. [CORE/Cake/View/Helper/FormHelper.php, line 383]
No comments yet. Be the first one to comment.