KATHMATHDU — The Nepal Stock Exchange (NEPSE) index experienced a notable downturn this week, shedding approximately $5.5\%$. After closing at $2950.16$ points the previous week, the benchmark index fluctuated and ended the week at $2782.18$ points. Despite the overall weekly decline, the market recorded a net gain of $167.98$ points (or $5.69\%$) compared to its lowest closing benchmarks.
Out of the five trading days this week, the market registered gains on three days and closed in the red on the remaining two.
Market Indicators and Turnovers Shrink
The downturn was reflected across all major indices. The Sensitive Index dropped by $29.21$ points, while the Float Index and the Sensitive Float Index declined by $12.18$ points and $9.98$ points, respectively.
Accompanying the drop in the index, market participation cooled significantly:
- Average Daily Turnover: Fell by $27.20\%$, dropping from NPR $16.49$ billion in the previous week to NPR $12$ billion this week.
- Average Daily Share Volume: Decreased by $27.36\%$.
- Average Daily Number of Transactions: Declined by $6.37\%$.
Consequently, NEPSE’s total market capitalization shrank by roughly $5.5\%$, losing NPR $279$ billion to close at NPR $4.73$ trillion, down from NPR $5.009$ trillion at the end of the previous week.
Sectoral Performance
Out of the $13$ sub-indices, only one managed to secure gains, while the remaining $12$ closed in the negative territory.
- The Gainer: The Manufacturing and Processing sector rose by $2.02\%$, adding $212.32$ points to close at $10,740$ points.
- The Losers: The ‘Others’ sub-index suffered the heaviest percentage loss, plummeting by $10.15\%$ ($245.36$ points) to settle at $2171.06$. In terms of absolute points, the Life Insurance sector was hit hardest, dropping by $710.60$ points.
New Listings
A total of $77,547,043.86$ units of shares from $11$ companies were listed on the stock exchange this week. This included Nabil Bank’s $8\%$ non-redeemable non-cumulative preference shares. Additionally, bonus shares from the following companies were listed:
- Prabhu Mahalaxmi Life Insurance
- Vindhyabasini Hydropower Development Company
- NLG Insurance Company
- Universal Power Company
- Samata Gharelul Laghubitta Bittiya Sanstha
- Shangrila Development Bank
- Prime Commercial Bank
- Mahuli Laghubitta Bittiya Sanstha
- Mahalaxmi Bikas Bank
- Arun Valley Hydropower
Top Gainers and Losers
Reliance Spinning Mills led the pack of gainers this week with a massive price surge of $61.04\%$, closing at NPR $3,241.90$ up from NPR $2,013.10$ the previous week. Super Khudi Hydropower, Bhujung Hydropower, and Hotel Forest Inn also saw their share prices rally by approximately $61\%$.
On the flip side, Nepal Reinsurance Company emerged as the top loser, with its stock price dropping by $15.60\%$. Mountain Hydro Nepal followed closely, shedding about $14.5\%$ of its value.
Floorsheet Analysis
According to the weekly floor sheet breakdown, Bhujung Hydropower, Super Khudi Hydropower, and Hotel Forest Inn were among the top stocks on the “Most Popular Buy” list. Conversely, Mid Solu Hydropower, Upper Syange Hydropower, and Ganapati Microfinance Bittiya Sanstha topped the “Most Popular Sell” list.
Source: Merolagani
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