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Benchmark index in positive territory

2018-09-23

Share market experts are unconvinced with the market movement, even as the country’s sole secondary bourse has started moving towards positive territory in recent weeks.

“The share market has become buoyant recently but as per my calculation, the market will again fall below 1,100 points,” said Prakash Rajhaure, an independent stock analyst.

Stating that 2018 is not a good year for share investors, based on his analysis, Rajhaure said, “The benchmark index will drop below 1,100 points in December before making a U-turn.”

In the trading week of September 16 to 20, Nepal Stock Exchange (Nepse) index went up by 0.82 per cent or 10.23 points due to short-term market gain.

Opening at 1,244.84 points on Sunday, the benchmark index had increased by 11.69 points by the end of the day. On Monday, the market dipped by 0.13 point to 1,256.40 points, but reversed course the next day by rising 2.41 points to 1,258.81 points. The market again went down on Thursday, falling by 3.74 points to close the week at 1,255.07 points.

Meanwhile, the sensitive index inched up by 0.86 per cent or 1.82 points to 266.09 points and the float index also rose by 0.93 per cent or 0.84 point to 90.98 points.

Compared to the previous week when 10.02 million shares worth Rs 2.10 billion had changed hands through 23,611 transactions, 9.70 million shares of 189 firms worth Rs 2.62 billion were traded through 27,700 transactions in review week. Traded amount in review week was 24.91 per cent higher than the previous week.

It has to be noted though that the share market had remained open for only four days in the review week as Nepse remained closed on Wednesday in celebration of Constitution Day.

In the review week, only the finance and hotels subgroups landed in the red zone.

The hotels subgroup decreased by 1.04 per cent or 19.85 points to 1,887.41 points, with share price of Soaltee down four rupees to Rs 252. Finance sub-index shed 0.26 per cent or 1.66 points to 613.45 points.

On the other hand, non-life insurance subgroup soared by 3.25 per cent or 190.11 points to 6,023.55 points, with share
value of Everest Insurance going up by Rs 26 to Rs 1,246.

Similarly, the manufacturing sub-index advanced by 2.35 per cent or 53.63 points to 2,328.52 points, with Unilever Nepal gaining Rs 136 to Rs 24,799.

Hydropower rose by 2.19 per cent or 30.59 points to 1,423.08 points due to Chilime’s share price gaining five rupees to
Rs 730.

Meanwhile, the life insurance subgroup went up by 1.93 per cent or 108.03 points to 5,680.24 points and trading sub-index rose 1.51 per cent or 3.17 points to 211.89 points. Similarly, the development banks subgroup increased by 1.48 per cent or 22.14 points to 1,515.63 points.

Microfinance subgroup climbed 1.19 per cent or 18.33 points to 1,547.85 points, as Chhimek’s share price rose by
Rs 20 to Rs 955. Similarly, others subgroup went up by 0.30 per cent or 2.31 points to 759.07 points. The banking subgroup edged up by 0.26 per cent or 2.91 points to 1,095.84 points with share price of commercial banks like NMB up nine rupees to Rs 361.

In review period, NMB Bank took lead in trading volume, number of transactions and weekly turnover, with 553,000 of its shares worth Rs 199.05 million changing hands through 1,457 transactions.

NIC Asia Bank with Rs 121.29 million, Sanima Mai Hydropower with Rs 100.24 million, Nepal Bank with Rs 95.06 million and Prabhu Bank with Rs 93.61 million rounded up the top five firms in terms of weekly turnover.

Source: The Himalayan Times