Capital market loses heavily

The capital market lost Rs 7,37,58.56 million this week, dipping down to Rs 334,305.26 million from last week’s closing of Rs 408,064.82 million market capitalisation. The floatedmarket capitalisation also dropped to Rs 79,295.99 million this week.
Despite Finance MinisterDr Baburam Bhattarai’s confession that he did not mean to dub the share market a gambling racket, the market did not see any improvement. Low investor confidence pulled the market down by a whopping 41.76 points to drop to 609.46 points from last week’s closing of 651.22 points. Investors in development bank, hydropower, commercial bank and finance companies groups lost heavily as their indices witnessed a fall of 94.04 points to 903.82 points, 69.99 points to 843.25 points, 50.14 points to 561.03 points and 31.69 points to 865.72 points, resepectively.
Similarly, investors in all other groups also lost except those in the insurance companies group that saw growth continuously for the third week despite gloom in the market. Insurance companies group gained 8.01 points to reach 690.86 points from last week’s closing of 682.85 points.
The sensitive index — a barometer of Group-A companies that has 77 companies — plunged by 11.69 points to drop to 157.51 points from last week’s closing of 169.20 points. It is indeed rare for the sensitive index to drop by a double digit. Similarly, the float index — calculated on the basis of real transactions — lost 3.72 points to drop to 59.83 points from last week’s closing of 63.55 points. Analysts claim that the government needs to bring package programmes to cou-nter the crisis of confidence.However, the transaction amount of 82 companies saw a rise by 31.73 per cent to rest at Rs 308.889 million from last week’s fall of 28.65 per cent.
Nepse closed in the red zone on all five days this week. The domestic market has five-day trading, from Sunday to Thursday. The market opened in the red on Sunday at 650.73 points from last week’s closing of 651.22 points. It went on further dropping each day and plunged by 16.33 points on Thursday to close the weekly trading at 609.46 points in the sole secondary market.
This week’s top performers were Nepal Development and Employment Promotion Bank (with 27.04 million), Standard Chartered Bank Nepal (with Rs 26.37 million), Nepal Telecom (with Rs 19.72 million), Nepal Bangladesh Bank (with Rs 18.82 million) and Lumbini Bank (with Rs 17.61 million).In terms of number of number of transaction also, Nepal Development and Employment Promotion Bank topped the chart with 795 transactions, but in terms of share units traded NMC Mutual Fund topped with 1,85,000-unit shares.This week, Nepse listed 31,11,824-unit of bonus shares of Standard Chartered Bank and 7,50,000-unit rights shares of United Finance