Stock market down 21 points as situation in Tarai worsens

Friday - 9th October, 2015 | www.myrepublica.com | General News

Nepal Stock Exchange (Nepse) index fell 21.42 points this week to close at 1,162.06 points on Thursday -- the last trading day of the week.

The benchmark index has remained volatile in recent weeks because of unofficial India blockade and worsening political situation in several Tarai districts. While the market went up by 19 points last week, shrugging off political fears, stock investors turned nervous again as the blockade threw country's economy and normal life out of gears.
"Though the benchmark index should have moved on the green zone this week as bank and financial institutions (BFIs) are providing attractive stock dividends to raise their capital, it is going downward due to the current Tarai crisis. The economic blockade by India has panicked investors further," Narendra Sijapati, former president of Stock Brokers Association of Nepal (SBAN), told Republica.

Most of the trading groups ended on the red zone this week. Manufacturing and Processing group was the biggest loser of the week as its sub-index plunged 152.53 points to close at 1,890.86 points. Insurance sub-index fell 64.16 points to close at 4,914.59 points. Hotels and Banking groups also ended on the red zone, losing 27.69 points and 27.08 points, respectively, to settle at 1,857.33 points and 1,100.43 points. Hydropower group also shed 25.24 points to close at 2,015.36 points. The sub-indices of 'Others' and Finance groups also went down 1.18 points and 0.55 point, respectively, closing at 769.51 points and 567.21 points. Development Bank sub-index, however, went up by 1.86 points to settle at 963.25 points. Trading group remained unchanged at 207.97 points.

A total of 3.77 million units of shares of 155 companies worth Rs 2.14 billion were traded in the market this week through 10,573 transactions. The turnover is 7.65 percent higher than the total turnover recorded last week. Everest Bank topped the list of companies this week in terms of turnover amount (Rs 277.72 million) while International Leasing and Finance Company led the list of the companies in terms of number of shares traded (451,000 units). Everest Bank Ltd was at the top in terms of number of transactions (641).