KATHMANDU, July 19: The stock market showed tepid response to the announcement of full-fledged budget for fiscal year 2013/14, as the benchmark index increased my mere 10.45 points this week. Nepal Stock Exchange (Nepse) close the week´s trading at 52.16 points on Thursday.
A total of 1.26 million units of shares of 120 companies worth Rs 393.57 million changed hands through 4,225 transactions over the week. The domestic stock market had recorded total transactions worth Rs 446.66 in the previous week. [break]
The Commercial Bank sub-index - the heavyweight trading group in Nepse - increased by 17.30 points to 518.94 points over the week. Manufacturing and Hotel groups also their sub-indices go up by 1.77 points and 0.57 points, respectively to 870.49 points and 663.81 points. Similarly, the sub-indices of Hydropower, Insurance and Development Bank increased by 47.84 points, 38.22 points and 3.45 points to close at 957.14 points, 253.63 points and 259.74 points, respectively.
According to Nepse´s weekly report, Everest Bank topped the list of companies in terms of transaction amount. The bank´s shares worth Rs 279.9 million were trading during the week. Similarly, Chilime Hydro and Nepal Investment Bank and stood in the second and third positions with share transactions worth Rs 223.75 million and Rs 87.47 million, respectively.
Nabil Bank and Nepal Bangladesh Bank grabbed the fourth and fifth positions with total share transactions of Rs 87.38 million and Rs 83.86 million, respectively.
“The stock market couldn´t show improvement this week as the newly announced budget doest not have programs that motivates investors,” Nanda Kishore Mundada, a share analyst, said. “Now, financial statements of listed companies will determine Nepse´s future course.”
According to Mundada, the investors were hoping that the government would waive off Capital Gains Tax (CGT) on stock transactions through the budget.
The government levies 5 percent and 10 percent CGT on individual and institutional investors, respectively.
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