The Nepal Stock Exchange (Nepse) reopened fully for the first time after the lockdown was imposed on June 29 and in volatile trading till July 2, the benchmark index surged by 4.54 per cent or 54.53 points.
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KATHMANDU, JULY 4
The Nepal Stock Exchange (Nepse) reopened fully for the first time after the lockdown was imposed on June 29 and in volatile trading till July 2, the benchmark index surged by 4.54 per cent or 54.53 points.
After the trading in the sole secondary market was suspended following the lockdown, the market had reopened for limited hours on May 12, but was closed again from May 14 as it faced a massive drop.
According to the analysts, some large investors have largely influenced the market movement.
“Some big investors are trying to manipulate the market at present during this crisis situation, so this is just a short-term gain in the market that we are witnessing and it will gradually go lower in the coming days,” said Radha Pokharel, chairperson of Nepal Puzibazzar Laganikarta Sangh.
“We will be able to tell about the further trend only after the current fiscal ends,” she added.
Along with the Nepse index, the sensitive index also witnessed an increase, going up by 3.34 per cent or 8.71 points to 269.03 points and float index has also ascended by 4.07 per cent or 4.46 points to 88.46 points.
In the review period, weekly turnover stood at Rs 1.60 billion.
The secondary market had opened at 1,201.58 points on Monday and dropped by 12.87 points by the end of the trading day. The benchmark index surged by 72.05 points on Tuesday and by 75.77 points on Wednesday.
However, the market dropped by 80.41 points on Thursday to close the week at 1,256.11 points.
In the review period, hotels, development banks and mutual funds subgroups landed in the red zone. The hotels sub-index fell by 13.35 per cent or 207.80 points to close the week at 1,348.90 points, while the development banks subgroup dipped by 0.98 per cent or 16.69 points to 1,671.04 points. Mutual funds shed 0.08 point or 0.82 per cent to settle at 9.61 points.
Meanwhile, trading was the leader among the gainers in the week, surging by 18.44 per cent or 138.55 points to 889.60 points.
Similarly, life insurance sub-index gained 12.48 per cent or 812.51 points to 7,321.96 points.
The manufacturing sub-index increased by 8.33 per cent or 199.21 points to land at 2,589.86 points and non-life insurance subgroup ascended by 6.59 per cent or 338.79 points to 5,481.05 points. Likewise, others subgroup went up by 5.23 per cent or 33.58 points to 675.35 points and banking accelerated by 4.19 per cent or 43.66 points to 1,085.17 points.
Moreover, microfinance subgroup rose by 3.40 per cent or 68.30 points to 2,076.60 points.
Likewise, hydropower subgroup edged up by 2.79 per cent or 25.15 points to land at 924.82 points and finance subgroup inched up by 0.89 point or 5.60 points to 634.83 points.
In the review week, Nepal Life Insurance Co was the leader in terms of weekly turnover with turnover of Rs 198.68 million. It was followed by Himalayan Distillery at Rs 152.05 million, Nepal Reinsurance Company at Rs 86.22 million, NIC Asia Bank at Rs 77.85 million and Shivam Cements at Rs 74.39 million.
In terms of weekly trading volume, Nepal Reinsurance Company led with 223,000 shares. It was followed by NMB Bank with 182,000 shares, Nepal Life Insurance Co with 171,000 shares, Global IME Bank with 167,000 shares and NIC Asia Bank with 165,000 shares.
Meanwhile, in terms of number of transactions, Nepal Reinsurance Company with 5,741, Nepal Life Insurance Co with 1,221, Himalayan Distillery with 915, NMB Bank with 755 and Nepal Investment Bank with 632 transactions were the top five.
Courtesy: Nepse
A version of this article appears in e-paper on July 5, 2020, of The Himalayan Times.
The post Benchmark index surges 4.54 per cent in volatile trading appeared first on The Himalayan Times.
