Nepse Exceeding 700 Points, Insurance-the Leader

Rashesh Vaidya

 

Kathmandu, Dec 8 – Nepse index exceeded 700 points during previous week. It had closed 651.61 on Sunday, 24^thNovember (the first trading day of the week) and reached 707.12 at the close of Thursday, 28^th November (the last trading day of the week). The market floor was open for five days.

 

Days	Sectors									Nepse Index
	Com. Banks	Mfg. & Pro.	Hotel	Others	Hydro	Trading	Insu.	Finance	Dev. Banks
Sun	622.20	934.31	1089.58	728.41	1572.67	170.86	1894.17	292.29	351.16	651.67
Mon	632.63	934.31	1103.96	728.41	1585.28	170.86	1948.60	294.06	363.72	661.51
Tue	647.52	934.54	1090.66	749.56	1624.88	170.86	1987.83	298.80	382.64	677.50
Wed	675.93	934.54	1080.40	763.65	1677.97	170.86	2030.36	303.32	397.60	700.51
Thurs	682.46	934.54	1100.88	783.62	1655.15	170.86	1998.95	308.49	408.34	707.12
Changes	60.26	0.23	11.30	55.21	82.48	0.00	104.78	16.2	57.18	55.45

Source: Nepse

 

In the week, the ‘insurance’ sub-index increased the highest by 104.78 points closing at 1998.95 points. That was followed by the hydro-power sector sub-index which increased by 82.48 points. Heavy increase in the share price of Sagarmatha Insurance Company, Shikhar Insurance Company and Nepal Life Insurance Company by Rs 243, Rs 230 and Rs 110 closing at Rs 1173, Rs 870 and Rs 3005 made the insurance sub-index to show the bullish trend. 

 

Similarly, the hydro-power sub-index also increased heavily through the trading of 95,495 scrips of Arun Valley Hydro-power Company at Rs 463 high and closing at Rs 457 per share. Similarly, the trading of 74,067 scrips of Chilime Hydro-power Company at Rs 1610 high and closing at Rs 1507 per share took place during the last week. There was no change in trading sub-index during the week.

 

The trend of the market shows that in such a bullish market, investors are switching their portfolio from the banking and financial sector towards the insurance companies. Though the shares prices of the banks and financial institutions (BFIs) were seen increasing but the share price of insurance companies have been seen increasing comparatively higher than that of the BFIs.

 

Shares of 138 companies were traded at Nepse during the week through 14,821 transactions amounting to Rs2,399,200,000. The transaction amount is 49.19 percent higher than that of earlier week. The total number of scrips traded was 6,732,794 which is 2,183,244 scrips more than that of earlier week.

 

NIC Asia Bank topped the list in terms of transaction amount (Rs 173,098,000). Nabil Balance Fund I topped in number of scrips traded during the week. Altogether 688,203 scrips of the fund were traded during the week. At the same time, Mega Bank was at the top on the basis of the number of transactions (927).