Saturday, August 8, 2009

Shareholders loose this week, too

Shareholders of hydropower companies, commercial banks, finance companies, trading firms, development banks and insurance companies lost this week, pulling Nepse down by 16 points to 700.01 points from its opening 716.01 points on Sunday.
However, investors might get temporary confidence and the shares of existing banks and financial institutions might flare due to Nepal Rastra Bank's new policy of putting a temporary halt to the issuance of licences to Group A, B and C banks and financial institutions. Nepse has over 85 per cent dominance of banks and financial institutions.
Hydropower companies, commercial banks and finance companies sub-groups lost heavily with their indices plunging by 29 points to 948.19 points from Sunday's opening of 977.19 points, 24.07 points to 728.26 points from Sunday's opening of 752.33 points and 14.16 points to 678.41 points from Sunday's opening of 692.57 points, respectively.
The trading sub-group also lost 8.57 points to dip to 281.78 points from the opening 290.35 points, whereas development banks sub-group lost 7.33 points to drop to 741.15 points from the opening 748.48 points. The insurance sub-group slid by 5.07 points to 646.24 points from the opening 651.31 points.
Of the nine sub-groups, two -- manufacturing and hotels -- did not see any trading this week but the others sub-group became the only gainer this week with a 1.17-point gain to rise to 670.86 points from Sunday's opening of 669.69 points.
The transaction amount also decreased by 44.29 per cent to Rs 263.38 million against last week's Rs 472.82 million.Of the total transactions, Group-A companies contributed 46.75 per cent. The 78-scrip sensitive index -- a barometer of Group-A companies -- lost 5.49 points to drop to 184.97 points from the opening 190.46 points. The float index -- calculated on the basis of real transactions -- also skidded down by 1.94 points to 67.22 points from the opening 69.16 points.
This week Citizens' Bank International (with Rs 21.42 million) topped the chart in terms trading amount followed by Nepal Investment Bank (with Rs 20.69 million), Bank of Asia Nepal (with Rs 17.06 million), National Hydropower Company (with Rs 16.30 million) and Nepal Bangladesh Bank (with Rs 14.55 million).
In terms of number of share units traded, National Hydropower Company topped the chart with 1,73,000-unit shares changing hands while in terms of number of transactions Bank of Asia Nepal topped the chart with 460 transactions.

Nepse misleads
KATHNMANDU: Nepse is misleading. It does not include Sunday's index when it calculates from Sunday's closing to next Friday's opening. Sunday being the first day should be included in the index calculation for correct data. This week, the index plunged by 16 points to 700.16 points from the opening of Sunday morning's 716.01 points. But according to Nepse, it dropped by only 4.70 points because Nepse did not calculate the drop of Sunday's 11.30 points from the opening of Sunday morning's 716.01 points. Nepse said that the transaction was calculated from Friday (July 31) to Tuesday (August 4) as the stock market remained closed on Wednesday and Thursday which were public holidays. This week, Nepse witnessed trading on three days only -- Sunday, Monday and Tuesday -- instead of its regular five days -- Sunday to Thursday. But Nepse did not -- as always -- calculate Sunday's trading points and calculated only two days -- Monday and Tuesday -- and producedmisleading figures. Since its inception, Nepse has been providing misleading information.

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