Nepal Stock Exchange’s index Nepse gained 17.68 points this week (July 09-15) after a week of fall. However, share market experts termed the fall as an “intentional foul play by big investors”. Nepse had lost 10.84 points last week. The growth is not natural, said Rabindra Bhattrai, an expert on the Nepali capital market. “It seems some kind of foul play by big investors are behind the gains this week,” he said. “There is no change in the economic fundamentals to support this week’s gains,” he added.
Perhaps, big investors had played up the market to avoid margin call from banks and financial institutions, he added. “This is an artificial growth and will not last for long,” he said.
We can’t expect this kind of change in the index as a result of the budget because no new measures have been introduced to support the financial market or the industry in general, he said. He suggested small investors to wait and watch, saying there is no encouraging environment for short-term now.
The secondary market that closed at 460.07 points on Nepse on July 8 opened at 460.02 points on Sunday and a continuous gain was recorded for the next four trading days. Nepse gained 10.4 points in a single day on Thursday. The index gained 17.71 points between Sunday and Thursday.
This week, through 3,137 transactions 395,820 shares of 99 companies were traded, amounting to Rs 135.69 million. The transaction amount this week is 4.37 per cent less than that of last week. This week, the transactions of class ‘A’ companies comprised 62.93 per cent of the total transactions, amounting to Rs 85.3 million. The major gainer subgroups of the week include Hydropower (132.71 points), Commercial banks (20.54 points), Other (11.75 points) and Hotel (0.76 points). No change is noticed in Manufacturing, Trade, Insurance, Finance Companies and Development banks subgroups.
Bank of Kathmandu topped the list with a total transaction of Rs 21.88 million, followed by Standard Chartered Bank (Rs 9.54 million), Bhrikuti Development Bank (promoter shares worth Rs 9.44 million), Chilime Hydropower Company (Rs 8.84 million) and Nabil Bank (Rs 8.06 million).
In terms of number of transactions, Bhrikuti Development Bank topped the list with the transaction of 75,533 shares while Asian Life Insurance topped in the number of trade at 382.
This week rights, bonus and general shares were listed on the Nepse including 22,770 units of debentures. As per the list, 4.62 million rights share of Annapurna Development Bank, bonus shares of Siddhartha Bank (3.43 million units), Salt Trading (43,220 shares) and Bhrikuti Development Bank (211,420 shares) listed in Nepse. Similarly, ordinary shares of Nerude Micro-hydropower Development Bank (200,000 units) and Nilgiri Development Bank (500,000 units) were listed on the Nepse.