Weekly Analysis: Index closes at 1,554.55 points; NEPSE still in downward trend
Fri, Sep 8, 2017 4:31 PM on Latest, Featured, Stock Market, Weekly Analysis,
This week (Sep 3 - Sep 7), NEPSE had 3 trading days; market was closed on Sep 3 and Sep 5 on the occasion of Eid and Indrajatra respectively. On this week’s opening i.e. Sep 4, NEPSE index closed at a figure of 1,554.56; a decrease in the NEPSE index by 25.47 points as the previous week’s closing (Aug 31) was 1,580.03 points. However, on Wednesday, NEPSE index saw a rise by 11.94 points closing at 1,566.50 and then finally decreasing with 11.95 points settling on 1,554.55 points on Thursday.
Similarly, this week, the sensitive index closed at 326.01 points and float index closed at 112.54 points. In the previous week, both the sensitive and float index closed at a figure of 331.32 and 114.52 points respectively.
The float index indicates the performance of public (tradable) shares, while the sensitive index measures the performance of Group ‘A’ companies listed by the NEPSE.
Within 3 trading days, shares worth Rs 2.41 arba were traded with manual turnover of Rs 5.24 crore. The total traded share quantity figure at NEPSE this week stood at 4,499,805 units, with total 26,296 transactions.
Market Capitalization at Rs 18.03 kharba
This week on NEPSE the total market capitalization stood at Rs 18.03 kharba while the floated market capitalization at the end of the week was a figure of Rs 6.09 kharba. In previous week, total market capitalization stood at Rs 18.63 kharba and the floated market capitalization stood at Rs 6.35 kharba.
This downtrend in NEPSE can be attributed to the selling pressure in the market because of the upcoming Dashain festival as investors are trying to book their profit and are cashing in their investments.
Similarly, this week’s major highlight would be the misleading announcement on the declaration of the dividends of 25% stock dividend and 15% cash dividend by Nepal Investment Bank on Wednesday i.e. Sep 6 where the NEPSE index was seen to be in an upward trend. However, after the correction of the notice regarding the dividends; 15% stock dividend and 25% cash dividend, the market was seen in downward trend but at the end of the trading day market recovered and ended in green closing at 1,566.50 points.
Overall, the secondary market is still bearish in trend with most of the companies still in a decreasing trend with nearly every sector ending up being red.
A brief detail following the sector wise summary stands as:
Similarly, this week, the sensitive index closed at 326.01 points and float index closed at 112.54 points. In the previous week, both the sensitive and float index closed at a figure of 331.32 and 114.52 points respectively.
The float index indicates the performance of public (tradable) shares, while the sensitive index measures the performance of Group ‘A’ companies listed by the NEPSE.
Within 3 trading days, shares worth Rs 2.41 arba were traded with manual turnover of Rs 5.24 crore. The total traded share quantity figure at NEPSE this week stood at 4,499,805 units, with total 26,296 transactions.
Market Capitalization at Rs 18.03 kharba
This week on NEPSE the total market capitalization stood at Rs 18.03 kharba while the floated market capitalization at the end of the week was a figure of Rs 6.09 kharba. In previous week, total market capitalization stood at Rs 18.63 kharba and the floated market capitalization stood at Rs 6.35 kharba.
This downtrend in NEPSE can be attributed to the selling pressure in the market because of the upcoming Dashain festival as investors are trying to book their profit and are cashing in their investments.
Similarly, this week’s major highlight would be the misleading announcement on the declaration of the dividends of 25% stock dividend and 15% cash dividend by Nepal Investment Bank on Wednesday i.e. Sep 6 where the NEPSE index was seen to be in an upward trend. However, after the correction of the notice regarding the dividends; 15% stock dividend and 25% cash dividend, the market was seen in downward trend but at the end of the trading day market recovered and ended in green closing at 1,566.50 points.
Overall, the secondary market is still bearish in trend with most of the companies still in a decreasing trend with nearly every sector ending up being red.
A brief detail following the sector wise summary stands as:
