Deteriorating political situation coupled with onset of Dashain festival caused Nepal Stock Exchange (Nepse) index to slide by 27.59 points or 2.37 per cent week-on-week to rest at 1,134.47 points, from October 11 to 15.
While stock traders normally tighten their purse strings before the festive season, the unfavourable political situation has also dampened the spirit of the investors, according to stock analysts.
Opening at 1,162.06 points on Sunday, the benchmark index had plunged by 18.18 points by the day’s closing. The country’s only secondary market remained close on Monday and Tuesday on the occasions of Bhoto Jatra and Ghatasthapana, respectively. Over the next two days, the local bourse remained southbound, although the loss was comparatively muted — down 8.79 points on Wednesday and mere 0.62 points on Thursday.
In total, 2.18 million units of shares of 152 companies worth Rs 1.18 billion were traded during the week through 4,754 transactions. The traded amount was 44.59 per cent less than the preceding week when 10,573 transactions of 3.76 million scrips of 155 companies amounting to Rs 2.13 billion had been undertaken. It has to be noted, however, that Nepse was open for only three trading days this week, as against normal five days of the previous week.
Sensitive index, which gauges the performance of class ‘A’ stocks, dropped 6.07 points to 245.57. Likewise, the float index that measures the performance of shares actually traded also shed 2.03 points to settle at 80.99, during the review period.
Except for trading, which remained constant at 207.97 points, every single subgroup landed in the red in the week.
Banking, the subgroup with the highest stake in Nepse’s market capitalisation, retreated by 2.91 per cent to 1,068.39 points. Share price of commercial banks like Everest plunged by Rs 151 to Rs 3,079, Standard Chartered by Rs 112 to Rs 2,700 and Nabil by Rs 80 to Rs 2,360, among others.
Insurance dropped 2.48 per cent to 4,792.74 points, weighed down by share value of firms such as Nepal Life Insurance going down by Rs 92 to Rs 3,274 and National Life Insurance landing at Rs 2,224, down Rs 45.
Development banks reversed previous week’s gain by falling 2.32 per cent to 940.9 points. Chhimek Laghubitta Bikas Bank saw its stock price dive by Rs 134 to Rs 1,665 and Nirdhan Utthan by Rs 36 to Rs 1,784.
Adding to previous week’s loss of 2.89 per cent, hotels sub-index descended by another 1.83 per cent to 1,823.48 points. Even as Taragaon rose by four rupees to Rs 235, Soaltee landed at Rs 425, down Rs 11 and Oriental rested at Rs 567, down three rupees.
Manufacturing followed close behind with 1.68 per cent drop to 1,859.16 points, primarily with Unilever’s stock plummeting by Rs 611 to Rs 25,480. Hydropower fell one per cent to 1,995.24 points. Chilime was down five rupees to Rs 1,400, Sanima Mai was down Rs 16 to Rs 790, among others. Nepal Telecom’s stock price slipped by five rupees to Rs 650, which in turn dragged the others subgroup down 0.76 per cent to 763.64 points.
Finance, which had barely managed to land in the green zone in the previous week, dipped by marginal 0.60 per cent to 563.78 points. Butwal Power Co topped the chart in terms number of shares traded and turnover with 700,000 of its scrips changing hands amounting to Rs 280.9 million.
Second in line in terms of highest turnover during the review period was Everest Bank with Rs 135.66 million, followed by Nepal Investment Bank (Promoter Share) with Rs 59.81 million, Agricultural Development Bank with Rs 57.88 million and Nepal Bangladesh Bank with Rs 52.26 million.
Meanwhile, Agricultural Development Bank took the lead in number of transactions clocking 336 deals.