FY 2074/75 entering its final quarter; investors attracted to scrips with lower supply in pursuit of higher return

Mon, Apr 16, 2018 3:46 PM on Latest, NEPSE News, Stock Market,

NEPSE today has climbed 17.42 points or 1.36%, which is accounted by the rise in Insurance and Microfinance scrips. The market had opened at 1,280.30 points today, which experienced minor fluctuations throughout the day. Despite the fluctuations, the index climbed and landed in green zone. The rise in index today, as opposed to yesterday’s single digit growth is considerably good. However looking further into the index, we can see that this growth is induced mostly by Insurance sector and few Microfinance companies.

With the increment of paid-up capital of commercial banks to Rs. 8 arba, the supply of shares of this sector has significantly gone up. However, on the other hand Insurance companies with paid-up capital of around Rs. 50 crore has lesser supply of shares indicating higher earning per shares relative to banks. This might have pushed the demand of Insurance companies’ scrips, hence the growth.

Today, the market closed with a decent turnover of Rs. 57.68 crore. A total of 1,178,738 shares were today via 6,804 transactions.

Prabhu Insurance (PRIN) stood ahead in terms of turnover as more than 2.81 crore worth shares were traded. As you can see below the entire to turnover list is crowded by Insurance companies, with the exception of one bank. Likewise, Kumari Bank Limited (KBL) stood at top in case of number of shares traded as 65,771 unit shares were exchanged.

Likewise, Prudential Insurance Co. Ltd (PICL) was the top gainer of the day as it gained 10% on its price and closed at Rs. 770. Similarly, the 6 other scrips on top gainers list also experienced a growth of more than 9%. These scrips are Global IME Laghubitta Bittiya Sanstha (GILB), Nepal Insurance Co. Ltd. (NICL), United Insurance Ltd. (UIC), Asian Life Insurance Co. Ltd. (ALICL) and Mahila Sahayatra Microfinance Co. Ltd. (MSMBS). Similarly, Nepal Life Insurance Co. Ltd. Promoter (NLICP) was the top loser of the day losing 9.95% on its price closing at Rs. 787.

The sub-indices for all sectors except Others increased today and landed in green zone. Among all, the insurance and microfinance sector have experienced the highest growth of 293.24 and 72.11 points respectively. The only sector landing in red today, others sector, lost 1.21 points.