Share market struggles to recover

January 27, 2001
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Kathmandu, Jan. 27: The stock market of the country recovered last week from the downward trend that lasted for about a month. The volume of share trading increased significantly during the week (January 22-January 27) with indications of a revival in the market.

Index up 8.29 points

Nepal Stock Exchange Ltd. (NEPSE) recorded a rise by over eight points during the reported period. The index of the banking sector rose significantly (by more than 16 points) during the week following consecutive falls for the past few weeks.

The NEPSE index, according to Nepal Stock Exchange Ltd., rose by 8.29 points on the last day in comparison to the index of the first day. The NEPSE that figured 459.28 on the first day of the week rose to 467.37 on the last day (Friday).

So far as the sector-wise trading was concerned, the NEPSE index of the commercial banks and manufacturing and processing sectors recorded a rise while the index of the hotel and insurance sectors witnessed a fall. The index of the trading sector remained constant at 119.48.

The NEPSE index of the commercial banks climbed to 556.81 by the end of the week from 540.06 in the beginning. The index of the manufacturing and processing group increased slightly to 374.46 from 373.12 earlier. On the other hand, the index of the hotel sector slipped to 343.88 from 362.15 while the index of the insurance and finance sector came down to 355.432 from 358.95.

Nepal Industrial and Commercial (NIC) Bank maintained a lead in the share market in terms of transactions, the number of shares traded as well as the value of transaction. Altogether 13,800 shares of NIC Bank were traded in 106 transactions with a value of Rs. 19.3 million. During the previous week, 7,660 shares of the NIC Bank were traded on the NEPSE trading floor.

During the reported week ending January 26, altogether 50,028 units of shares belonging to 37 enlisted companies (out of 46) were traded for Rs. 48.9 million, according to the report received from Nepal Stock Exchange Ltd.

During the week preceding it, 39,479 units of shares worth Rs.31.35 million were traded on the NEPSE floor. The number of share transactions increased this week from 609 to 749.

Banks on lead

So far as the group-wise trading of shares was concerned, the commercial banks group maintained its dominance with 93.88 per cent (up from 92 per cent of the previous week) of the total market transaction value. The finance companies’ sector followed with 2.36 per cent of the market share. The transaction values of the trading and insurance sectors stood at 1.84 per cent and 1.29 per cent respectively.

The share trading of other sectors was insignificant, while there was no transaction of the trading sector companies.