Panic selling boosts transaction amount

Panic selling has fuelled the transaction amount, though the Nepse is continuously plunging due to low investors confidence.

The transaction amount has increased by 12.16 per cent to Rs 143.79 million -- from last week's 128.20 million -- through 3,967 transactions of 94 companies.

This week -- April 25 to 29 -- the Nepse dropped by 7.39 points to close at 419.28 points from the opening of 426.57 points.

Though, its not right time to sell shares, investors lost confidence and are in selling spree due to continued political uncertainty and over supply of the shares in the secondary market.

The market opened at 419.28 points on the Sunday morning and was standing at 426.57 on the Thursday evening at the closing time.

The class 'A' companies' contributed 52.23 per cent to Rs 75.1 million in the total transactions of the secondary market.

With Nepse plunging, the sensitive index also shed 1.76 points to 102.53 points from the opening of 104.29 points Sunday morning. Similarly, the float index too dropped.

Only trade and others sub-group gained this week among the nine sub groups. All the remaining sub-groups lost. The trade sub-group surged by 5.32 points while others sun-group flared by 5.96 points. Meanwhile, hydropower sub-group lost a whopping 23.52 points, followed by insurance, development banks, commercial banks and finance companies sub-groups that lost 12.85 points, 12.85 points, 10.13 points and 7.38 points, respectively. However, manufacturing and hotels sub-groups did not see any transactions this week.

In terms of transaction amount and in terms of number of share unit traded Siddhartha Development Bank topped the list by trading the 2,30,000-unit shares worth Rs 23.9 million. Bank of Asia Nepal was front runner in terms of number of transactions with 432 transactions.

This week's top five performers in terms of transaction amount are Siddhartha Development Bank (Rs 23.9 million), Bank of Kathmandu (Rs 13.95 million), Standard Chartered Bank Nepal (Rs 11.63 million), Bank of Asia Nepal (8.72) and Nabil Bank (Rs 8.1 million).

Nepse listed Central Finance Company's 192,290-unit of bonus shares this week.