Nepse cannot impress transaction

The decrease in capital gain tax has pushed the Nepse up by 32.99 points to 735.87 points but the transaction amount could not justify the whopping gain. The transaction amount observed only 3.06 per cent growth to Rs 394 million this week in comparison to last week's Rs 382.3 million.
However, the shareholders of seven sub-groups -- except manufacturing and trading -- commercial banks, development banks, hydropower, finance companies, insurance, others and hotels gained this week.
As expected the budget brought capital gain tax down to 10 per cent from the earlier 15 per cent but the Nepse could not perform better than last week. Last week too, the Nepse had surged more than this week as last week it had gained by 35.45 points to 702.88 points after a long spell of bearish trend. This week Nepse gained only 32.99 points to 735.87 points. The selling pressure has pulled the Nepse down by 13.24 points to 735.87 points on the last day of the weekly trading -- on Thursday. Except for the last day, other days the Nepse ended in the green zone.Similarly, the contribution of Group-A companies -- the blue-chip shares in the domestic market -- also increased to 53.78 per cent against last week's 44.36 per cent. The 78-scrip sensitive index also flared by 7.09 points to 195.18 points from last week's 188.09 points. Last week sensitive index had surged by 10.73 points.
Similarly, the float index -- calculated on the basis of real transactions -- gained 2.61 points to close at 70.08 points from last week's closing of 67.47 points.This week Nepal Bangladesh Bank (with Rs 64.77 million) topped the chart in terms trading amount followed by National Hydropower Company (with Rs 50.55 million), Standard Chartered Bank Nepal (with Rs 49.15 million), Bank of Kathmandu (with Rs 27.55 million) and Nabil Bank (with Rs 19.06 million). Both -- Nepal Bangladesh Bank and National Hydropower Company -- is promoted by NB Group.
In terms of number of share units traded National Hydropower Company topped the chart with 5,44,000-unit shares changing hands, in terms of number of transactions Bank of Asia topped the chart with 296 transactions.

The new provision
KATHMANDU: According to the new provision on Capital Gain Tax announced in the budget for 2009-10, as per the, section 1, subsection 2 of the Aarthik Bidhayak Act 2066 the provision of section 1,2,3,4,5 and 10 will be executed immediately and the rest of the provisions are executed from Shrawan 1, 2066 (July 16). The section 52 of the said act specifies that the capital gain tax on listed securities are as follows:-
Capital Gain Tax for Individuals -- 10 per cent of the gainOther than individuals -- 15 pe rcent of the gain
In Case fo Non-Listed Securities
Capital Gain Tax for Individuals -- 10 per cent of the gain
Other than individuals -- 15 per cent of the gain