During the review period of August 22 to September 19, the Nepal Stock Exchange (NEPSE) index went up by 74.92 points (+6.33%) to close at 1,258.81 points. The market continued its upward momentum for a straight fourth week and was also able to touch the three months closing high of 1,256 points.This bullish sentiment in the market has been mainly attributed to the listing of new securities which were long pending due to listing fee issues as well as declaration of attractive dividends by the listed companies, especially commercial banks post publication of their financial performance for FY 2017/18. Furthermore, investor confidence was clearly reflected in the trading volume as it went up by whopping 73% during the review period and the total market turnover stood at Rs 7.50 billion.
During the review period, all sub-indices landed in the green zone. The Commercial Bank sub-index (+7.75%) led the pack of gainers with increase in share value of NIC Asia Bank (+Rs 93), Bank of Kathmandu (+Rs 48), Prime Commercial Bank (+Rs 42) and Kumari Bank (+Rs 39). Similarly, Manufacturing & Processing sub-index (+6.46%) was second in line with surge in share value of Unilever Nepal (+Rs 1,162), Bottlers Nepal-Terai (+Rs 950) and Himalayan Distillery (+Rs 65). Likewise, other sub-index (+5.96%) followed suit with increase in share value of Nepal Telecom (+Rs 56) and Hydropower Investment and Development Company (+Rs 4). Likewise, Non-Life Insurance sub-index (+5.67%) went up with increase in the share value of Sagarmatha Insurance (+Rs 125), Prudential Insurance (+Rs 107) and Premier Insurance (+Rs 105) while the Development Banksub-index (+5.5%) went up as share prices of Sahayogi Development Bank (+Rs 40), Bhargav Development Bank (+Rs 37) and Muktinath Development Bank (+Rs 30) went up. Also the Microfinancesub-index (+4.64%) rose with increase in the share value of Suryodaya Microfinance (+Rs 290), Kisan Microfinance (+Rs 173) and Janautthan Microfinance (+Rs 102).
Similarly, Hydropowersub-index (+ 3.75%) rose with the rise in the share value of Butwal Power (+Rs 31) and Arun Kabeli Power (+Rs 26). Hotel sub-index (+2.98%) followed with increase in the share value of Oriental Hotel (+Rs 25) and Soaltee Hotel (+Rs 7). Likewise,Trading sub-index (+2.20%) surged with increase in share value of Salt Trading Corporation (+Rs 30). Also, Life Insurance sub-index (+1.74%) moved up with increase in the share value of Prime Life (+Rs 40) and Life Insurance Nepal (+Rs 30). Similarly, Finance sub-index (+1.03%) went up marginally with increase in share value of Janaki Finance (+Rs 24) and ICFC Finance (+Rs 9).
News & Highlights
Securities Board of Nepal (SEBON) will be observing October 1-7 as World Investor Week (WIW) by organising provincial securities market expo, organising and managing different events, launching new programmes and publishing various study materials in order to disseminate key messages for investor education and protection, as well as promoting financial literacy and learning opportunities for investors.
NEPSE operationalised a mock interface of its fully automated online trading system on September 17 as a precursor to the launching of the real time trading in the next two months. The newly launched mock interface is a scaled down version of real time trading interface. NEPSE’s plan to start mock trading by the first week of September was delayed after stockbrokers failed to create their data centres within the deadline.
In the public issue front, Kalika Power Company Limited (KPCL) issued Initial Public Offering (IPO) worth Rs 120million.The issue was assigned IPO Grade 4 by ICRA Nepal indicating below-average fundamentals. Meanwhile, SEBON has approved IPO worth Rs 54 million of Chautari Microfinance for general public. The issue has been assigned IPO Grade 4 by ICRA Nepal indicating below average fundamentals.
Outlook
As the biggest festive season is around the corner and listed companies have started to declare yearly dividends from the previous fiscal year, investor sentiment towards the market has somewhat improved amidst doubts about stability of the current surge. Entry of fresh set of investors aided by strong participation of existing investors is going to be key to sustain the current growth. Further, as full-fledged online trading is soon to start, the market outreach and depth is going to improve substantially which is a key ingredient for stable market.
This is an analysis from beed management pvt. ltd. No expressed or implied warrant is made for usefulness or completeness of this information and no liability will be accepted for consequences of actions taken on the basis of this analysis.
This is an analysis from beed management pvt. ltd. No expressed or implied warrant is made for usefulness or completeness of this information and no liability will be accepted for consequences of actions taken on the basis of this analysis.
