By Bikram Chitrakar




(Review for 27 June to 25 July, 2012)


Technically, the Simple Moving Average (SMA) exceeds 30 days SMA and 200 days SMA as Nepse index is stretched higher.


Sentiments improved among the stock market investors ahead of the 4th quarter results due early August from the companies despite sour data received in the 3rd quarter. Investors seem optimist of dividend declaration for the FY 2068/69 BS (2011/12). As a result, the benchmark Nepse index went up 31.27 points or 7.72% to 405.02 during the review period when the session’s high was on 23 July with 408.35 and the low was on 26 June with 368.480.

A number of banking and financial institutions have reduced their interest rates on different saving schemes recently. Thus the attraction of interest rates is reduced now which is expected to lure the investors back to the equity market.


One important development during the review period was the approval of the guidelines for Mutual Fund. This has opened way for two already approved mutual funds (Siddhartha Mutual Fund and Nabil Mutual Fund) to start operation.





Performance by Sector






Commercial banking sector that accounts for the major share in the volume of trade in Nepal Stock Exchange added 31.27 points or 7.72% during the review period to close at 405.02. Similarly, the Hydropower sector gained a hefty 77.37 points followed by 63.43 points up in others sector to reach 699.24 and 615.65 respectively. Insurance sub-index accelerated 28.67 points to 509.04 while manufacturing sector surged 15.57 points to 682.23. Development bank moved up 6.81 points or 2.68% to rest at 253.67. However, finance sector descended 2.47 points or 0.94% to rest at 263.37. Sensitive index that measures the performance of 133 blue chip scrip at the secondary market escalated 10.34 points or 9.87% to reach 104.73 while the float index calculated on the basis of real transactions went uphill 1.81 points or 5.75% to 31.48. The turnover volume was of Rs. 1,501,282,753 during the review period from 5,071,209 units of shares traded via 26,922 transactions.


The accompanying figure demonstrates sector-wise distribution based on the total volume of trade. As usual, commercial bank dominated the volume occupying 63.24%. Hydropower sector holds 14.10%, finance sector accounts for 7.08% and remaining sectors cover the rest.


Technically, the Simple Moving Average (SMA) exceeds 30 days SMA and 200 days SMA as Nepse index is stretched higher. Index is expecting to encounter correction as 30 days SMA is in mood to follow the index at this level.







Chitrakar is a Stock Analyst with Jamb Technologies Pvt Ltd.