NEPSE plunges by 27.37 points this week

Kathmandu November 27- NEPSE index shrinked 27.37 points to close at 1044.01 points this week. Sensitive index that measure 'A' listed companies have also declined by 5.92 points to rest at 225.37 points.

During the week, 15615 transactions were recorded in which 2 million 436 thousands 630 units of shares of 150 companies were transacted amounting to Rs. 1 billion 241 million 220 thousands transaction amounts which is 63.78 growth than last week. In the last week, from 4868 transactions of 1 million 587 thousands 390 units of shares of 143 companies, total of Rs. 758 million 233 thousands amount were recorded.

In the sub-group, banking group has declined by 32.83 points, Development banks group has declined by 18.99 points, Finance group has declined by 6.3 points, Hotel group has declined by 11.45 points, Hydropower group has declined by 55.6 points, Insurance has declined by 131.7 points, Manufacture and Processing group has declined by 4.65 points whereas 'other' group has gone up by 3.53 points. The index of ‘trading’ group remained stable throughout the weekdays.

Regarding the individual companies, Nepal Life insurance led in terms of the transaction volume. The secondary market witnessed a transaction worth Rs 88 million 110 thousands of the company’s shares. Shares of Siddhartha Equity Oriented Scheme changed hands the most over the week, with the trading of 175000 shares.

On the basis of transaction number, Api Hydropower tops the list with 4883 transactions. This week, trading took place for all five days in NEPSE floor and no transactions of both institutional and governmental treasury bills were taken place.

Meanwhile, NEPSE listed 400,000 unit shares of Clean Village Microfinance, 500,000 unit shares of Reliable Finance, 300,000 unit share of Omi Microfinance Bittiya Sanstha and 5,557,000 unit shares of Nepal Rural Development Bank.

The ongoing Tarai protest and unofficial blockade imposed by India are the main culprits for the decline of NEPSE index. Even though bank and financial institutions have shown improven financial position along with good quality bonus share and cash dividend are being distributed by the Annual General Meeting of such institutions, NEPSE failed to bounce back. Thus, it can be concluded that ongoing political turmoil has caused de-motivation and lack of confidence among the investors.