Kathmandu, May 12
The Nepalese capital market has continued to fluctuate for a couple of days. The secondary market, which was in bullish trend for some time, has taken downhill way all of sudden as the political atmosphere turned unstable.
With the progress in the peace and constitution writing processes, the share market had witnessed a bullish trend after a long time invigorating the hopes and aspirations of investors.
However, it could not uphold the trend for long. The Nepalese Stock Exchange (NEPSE) fell suddenly by almost 17.04 points this week. It dropped to 411.40 points on the last day of its transaction by reaching 432.83 points on the second day.
This week, the sub-indices of commercial banks, ‘others’, trade, insurance and development bank dropped by 29.33 points, 4.70 points, 7.01 points, 1.39 points and 0.45 points respectively to push the whole index down.
However, the sub-indices of hydropower have posted a growth of around 10.36 points.
This week, the sub-indices of manufacturing and hotel groups recorded no any change this week.
The sensitive index, which measures the group ‘A’ companies, fell by 4.68 points to close at 104.44 points. The share market’s turnover dropped by 17.04 per cent this week as compared to last week. The market made its transactions for four days.
According to a NEPSE report, the share market made a total turnover of Rs. 644,720,000 this week as compared to Rs. 329,497,000 last week.
This week, the NEPSE traded 2,520,740 shares of 114 companies in 6256 transactions. It had traded 931,019 shares of 1114 companies in 48313 transactions last week.
Of the total turnovers, Group ‘A’ companies contributed Rs. 394,500,000 this week. That accounted for 95.67 per cent of the total turnover.
This week, Sanima Bank stood first in terms of the turnover and number of transactions. As much as 1,174,974 shares of the bank were traded amounting to Rs. 147,900,000 this week, while the Bank of Kathmandu Limited has occupied the first position in terms of the number of transactions (606).
Based on transaction amounts, the top five companies include Sanima Bank (Rs. 122.06 million), Bank of Kathmandu Limited (Rs. 88.43 million), Everest Bank Limited (Rs. 34.39 million), Laxmi Bank (Rs. 23.90) and Chilime Hydro Power Company Limited (Rs. 23.60million).
This week, three companies have listed their shares in the secondary market. Grand Bank Nepal has listed 790,891 bonus shares in the stock market. Royal Merchant Banking and Finance and Reliable have listed 300,292 and 233,896 bonus shares, respectively.
Talking to The Rising Nepal, share analysts said that as the share market had close connection with the political system and situation of the country, it shows a similar sign with the improvement and deterioration of the political condition
"Basically, the share market is closely linked with the political system," he said, adding, "As there was a bit development in the peace and constitution drafting processes, the share market went spirally up."
However, it could not retain for long as there were no backing of a good system, they said.
They viewed that the share market needed continuous support for boosting confidence of the investors.
There is a majority of individual investors in the capital market. The capital market fluctuates with the changes in the individual sentiment.