Nepse falls for 2nd consecutive week

KATHMANDU, Jan 11: Nepal Stock Exchange (Nepse) fell for the second consecutive week as problems in the server of the stock market operator and effect of book closure season exerted pressure on domestic shares.



The benchmark index, which opened at 533.59 on Sunday, surrendered 4.66 points, or 0.87 percent, over the week to close at 528.93 points on Thursday, the last trading day of the week, with sub-indices like banking, hydropower and development banks taking a dip. [break]



“The index retreated this week because of problems seen in Nepse´s server on Tuesday, Wednesday and Thursday, which prevented smooth share transaction process,” Stock Broker Anjan Poudel said.



“The distribution of cash dividend and bonus shares by many listed companies also had some impact on the share market, as very few investors were engaged in buying and selling activities.”



Share transaction usually slows down during dividend distribution season as investors, planning to sell stocks, defer the plan and wait until cash or bonus shares are extended by companies. “At the same time, investors, who want to make purchases, keep their share-buying plans on hold and wait for stock prices to adjust,” Poudel said, referring to stock price adjustment that usually takes place after companies list their bonus shares on the market.



Over the week, five companies listed their bonus shares on the stock market. Nabil Bank, for instance, listed 4.07 million units of shares on the stock market, while Birat Laxmi Development Bank, Infrastructure Development Bank, Lumbini General Insurance Company and Paschimmanchal Finance listed a total of 552,134 units of shares on Nepse.



As many investors remained away from the stock market, share transaction fell by 10.8 percent to Rs 394.73 million during the week.



In terms of share trading amount, Everest Bank secured the top position this week, recording transaction of Rs 57.22 million. Nepal Bank Limited took the second place with share transaction amount standing at Rs 40.52 million. Bank of Kathmandu, in the meantime, came third as it witnessed shares worth Rs 39.55 million changing hands over the week. Nepal SBI Bank and Nepal Bangladesh Bank bagged fourth and fifth places this week, respectively, recording trading amount of Rs 27.59 million and Rs 19.93 million.

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