KATHMANDU, JUL 01 -
The Nepal Stock Exchange exhibited stability for the third straight week, calming stakeholders jittered by the dissolution of the Constitution Assembly.
Last week, the benchmark index rose 2.07 points to close at 377.48 points on Thursday. The market, which opened at 375.48 points on Monday, saw a marginal decline on Tuesday, before posting gains in following days. Groups representing commercial banks, others, hydropower companies, trading firms and development banks gained 0.8, 9.40, 11.19, 0.08 and 1.13 points, respectively. The sectors that faced losses were hotels (down 0.76 points), insurance companies (0.95 points) and finance companies (0.71 points). Manufacturing index remained intact.
Stockbrokers say the market is ‘very stable’ at present and will perform well in coming days. “The government’s initiatives to boost the capital market are showing good results,” said Anjan Raj Poudyal, president of the Stock Brokers’ Association of Nepal.
The Ministry of Finance recently took a nine-point decision to boost the capital market. The decisions include allowing banks and financial institutions to extend share purchase loans against the guarantee of stockbrokers, starting full-fledged operation of the central depositary system within July, starting mutual funds and preparing guidelines for the entry of institutional investors. The central bank has already issued circular allowing banks and financial institutions to provide share purchase loans. A board meeting of Securities Board of Nepal (Sebon) held on Monday also decided to allow stockbrokers to offer guarantee. “Now the ball is on the court of BFIs,” said Poudyal. “If they start providing the share purchase loan, it will be a huge boost for the capital market.”
Last week, the volume of transaction dropped by 42.64 percent, largely because of a public holiday that reduced trading days to four. The exchange realised a turnover of Rs 173.13 million compared to previous week’s Rs 301.85 million. Stockbrokers said this volume was satisfactory. Bank of Kathmandu posted the highest individual turnover of Rs 30.10 million. National Hydropower Company topped the chart in terms of number of shares traded—58,808 units. Chilime Hydropower Company registered the highest 375 transactions.
TOP FIVE COMPANIES IN TERMS OF TURNOVER
Company Turnover (in Rs. millions)
Bank of Kathmandu 30.10
Chilime Hydropower Co 20.07
Everest Bank 11.77
Himalayan Bank 10.14
NIC Bank 8.70
SECTORS THAT WENT UP
Sector Points Gained
Commercial Banks 0.80
Others 9.40
Hydropower 11.19
Trading 0.08
Development Banks 1.13
SECTORS THAT WENT DOWN
Hotel 0.76
Insurance Companies 0.95
Finance Companies 0.71
Upcoming AGMs
Name of Companies Proposal Date Venue
National Hydropower Co Discussion on annual report July 1 Army Officer Club
Patan Finance Limited Discussion on annual report July 1 Viva Banquet, Teku, Kathmandu
Asian Life Insurance Co Discussion on annual report July 4 Hotel Viswa, Birgunj
Farwestern Rural Dev Bank Merger July 5 Central Office, Dhangadhi
Nepal Bitumin and Barrel Udhyog Ltd Discussion on annual report July 8 Yak Palace, Pulchowk
Shikhar Insurance Co Discussion on annual report July 8 Company’s head office, Thapathali
Multipurpose Fin Co Ltd Discussion on annual report July 10 Rajbiraj, Saptari
Citizen Investment Trust Discussion on annual report July 11 NTB, Bhirkutimandap
Hama Merchant and Fin Ltd Discussion on annual report July 11 Baithak Event Venues, Tirpureshwor
Manjushree Financial Institute Mandate the board for merger July 14 Baneshwor Banquet, Baneshwor
Source: Securities Board of Nepal
Source: http://www.ekantipur.com/2012/07/01/business/stock-market-shows-signs-of-stability/356441/
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