The benchmark index dropped to 443.89 points losing 5.6 points on Wednesday. The Nepse had dropped to 445.03 points on November 14, 2006. [break]
Share analysts said lower rate of returns from the stock market as compared to interest offered by banks is the major cause behind the sluggish stock market.
Sub-indices of all trading groups, except Hotels and Development Bank groups, went down on the day, dragging down the benchmark index. Banking and the Hydropower groups saw their sub-indices shed 2.06 points and 4.5 points to close at 420.76 points and 693.71 points respectively.
Finance and Others groups also lost their sub-indices by 1.65 points and 24.67 points to close at 440.37 points and 477.05 points respectively. However, Hotels and Development groups gained by 2.61 points and 1.29 points to settle at 367.73 points and 463.87 points respectively.
A total of 33.324 units of shares and 50 scrips worth Rs 12.12 million changed hands through 297 transactions on the day. Total market capitalization was recorded at Rs 347.95 billion.
RWS contribute 6 pc of Nepse transactions
Transactions from Remote Work Stations (RWS) -- the branch offices of stockbrokers outside the capital -- have reached around six percent of the total stock transactions in the country.
According to Nepal Stock Exchange (Nepse), RWS of seven brokers companies recorded a transaction of Rs 46.2 million -- about 5.96 percent of the total transactions of Rs 779.6 million during March 1 to April 7.
Stockbrokers have already opened RWS in Pokhara, Narayanghat and Biratnagar and are planning to open more offices in Birgunj, Butwal and Nepalgunj as per the Nepse´s plan of increasing rural people´s access to stock market though online trading.
Meanwhile, Annapurna Securities started stock transactions in Pokhara from Wednesday becoming the seventh broker company operating outside the capital. The company exchanged 689 units of shares worth Rs 680,000 through 13 transactions on the opening day.
Nepal Stock House, Premier Securities and Kumari Securities are operating in Pokhara, while Trishul Securities and Investment is operating in Narayanghat. Nepal Investment and Securities and Pragyan Securities have their branches in Biratnagar.
ADBL’s IPO oversubscribed
The initial public offering (IPO) of Agricultural Development Bank Ltd (ADBL) has been oversubscribed by about 2.5 times.
Siddhant Raj Pandey, CEO of Ace Development Bank - the issue manager for the largest ever IPO, told myrepublica.com that investors had applied for shares worth Rs 2.5 billion. “Despite liquidity crunch and downturn in stock market, people have showed encouraging response to the IPO,” Pandey said.
ADBL had floated 9.6 million units of shares worth Rs 960 million for the public from Sunday. Bank officials and the issue manager had claimed that the shares would be oversubscribed by five times due to sound financial performance of the bank.
A total of 288 outlets were set up to collect applications across the country during the four-day issue. With the new issues, total stake of public in the bank would increase to 44.14 percent. The bank issued 14.14 percent shares to its debtors on December 10, 2007.
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