KATHMANDU, JANUARY 25
After surging by almost 175 points since the first week of January, the country’s sole secondary market has gone into correction mode, with the local bourse bearing losses in the trading week between January 19 and 23.
Share market investors said that the market had faced buying pressure earlier as banks and financial institutions are releasing their results of the second quarter of this fiscal year.
“After a surge of over 150 points, the secondary market has undergone correction, which is normal,” said Radha Pokharel, chairperson of Nepal Pujibazar Laganikarta Sangh.
While the market has started facing some liquidity crunch, Nepse will surely recover in the coming days, she added.
Nepal Stock Exchange (Nepse) index dropped by 0.97 per cent or 12.75 points in the review week to below the threshold of 1,300 points.
However, weekly turnover surged by 28.1 per cent compared to the previous week to reach Rs 8.55 billion. In the previous week, the market had witnessed transactions worth Rs 6.67 billion. The trading volume also accelerated to 25.10 million stocks changing hands this week from 21.19 million in the previous week.
The secondary market had opened on Sunday, with the benchmark index at 1,310.23 points. It had soared by 33.43 points by the end of the first trading day. On Monday, the market saw some of the gains wiped out, as Nepse fell by 26.54 points. On Tuesday, it recovered some of the losses of the previous day by rising 3.36 points. However, the local bourse dropped by 7.05 points on Wednesday and 15.95 points on Thursday to close the week at 1,297.48 points.
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Life insurance sub-index was the biggest gainer of the week, soaring by 7.67 per cent or 513.69 points to 7,214.15 points due to the share price of Nepal Life Insurance Co jumping by Rs 61 to Rs 1,100.
Similarly, non-life insurance subgroup ascended by 4.06 per cent or 212.21 points to 5,440.27 points as share value of Himalayan General Insurance Co rose by Rs 25 to Rs 355, among others.
The mutual funds sub-index went up by 1.39 per cent or 0.14 point to 10.19 points and finance subgroup inched up by 0.02 per cent or 0.16 point to 665.17 points.
Meanwhile, trading subgroup was the biggest loser of the week, declining by 8.88 per cent or 77.15 points to 791.24 points, weighed down by Salt Trading Corporation slumping by Rs 203 to Rs 2,397.
Hotels sub-index dropped by 3.34 per cent or 69.01 points to 1,997.98 points. It was due to the share price of Oriental falling by Rs 13 to Rs 514.
Likewise, hydropower subgroup descended by 2.79 per cent or 28.97 points to 1,006.35 points and microfinance sub-index fell by 2.59 per cent or 53.55 points to 2,015 points.
Banking — the subgroup with the highest weightage in the secondary market — dropped by 1.99 per cent or 23.12 points to 1,140.19 points as share value of Himalayan Bank fe