Nepse gains 64.26 points as turnover hits record high of Rs 21.91 billion

Nepal Stock Exchange (Nepse) index gained 64.26 points to close the day's trading at 2,760.91 points on Wednesday, the fourth day of the week.

However, the share market recorded an all-time high turnover of Rs 21.91 billion today.

Earlier, on August 15, 2021, the share market had witnessed the turnover of Rs 21.64 billion. Today. the bullish market hits the yet another high turnover as the investors confidence returned two weeks ago. 

Share prices of some 191 companies advanced during the day's session, while some 44 declined and seven remained unchanged, according to the Nepse. 

Likewise, prices of 10 companies hit the positive circuit of 10 per cent on the day. Himalayan Reinsurance Ltd (HRL) logged the highest turnover with shares worth Rs 844.99 million traded during the day's trading. Mountain Energy Nepal Ltd (MEN) and Shivam Cement (SHIVM), with turnovers of Rs 410.93 million and Rs 402.63 million, respectively followed the HRL.

All the sub-indices posted gains in the day's trading. The biggest gain came from the Finance sub-index which was up by 8.08 per cent, followed by Investment and Others sub-indices with gains of 6.89 per cent and 3.99 per cent, respectively, according to the Nepse.

A total of 50.96 million units of shares were traded during the day's trading today, through 238,272 transactions. The Market capitalisation also reached Rs 4.38 trillion today.

नयाँ स्टक एक्सचेन्ज थप्ने प्रक्रिया स्थगित

नेपाल धितोपत्र बोर्डले सर्वोच्च अदालतको अल्पकालिन अन्तरिम आदेशपछि सुरु गरेको ब्रोकर र स्टक थप गर्ने प्रक्रिया तत्कालका लागि स्थगित गरेको छ । सर्वोच्चको आदेशअनुसार बोर्डले तत्कालका लागि लाइसेन्स प्रक्रिया स्थागित गरेको जनाएको छ । 

बोर्डले आवेदन माग गरेको मंगलबार अन्तिम दिनमा प्रक्रिया स्थगित गरेको हो । बोर्डले धितोपत्र ब्रोकरका लागि ३० दिन र स्टक एकस्चेन्जका लागि ४५ दिन समय दिएको थियो । बोर्डले ब्रोकरका लागि दिएको ३० दिनको समय असोज ३१ गतेभित्र ४५ नयाँ कम्पनीले धितोपत्र दलाल कम्पनीको लाइसेन्सका लागि बोर्डमा आवेदन दिएका थिए ।

सर्वोच्च अदालतले ४ कात्तिकमा न्यायाधिश तिलप्रसाद श्रेष्ठको एकल इजलासले नयाँ स्टक एक्सचेन्ज र ब्रोकर थप गर्ने प्रक्रियाविरुद्ध परेको रिटमा सुनुवाइ गर्दै तत्काल प्रक्रिया रोक्ने र दुवै पक्षको छलफलपछि मात्र उपयुक्त निर्णय लिने गरी अल्पकालिन अन्तरिम आदेश दिएको थियो । 

चुनावअगाडि आर्थिक चलखेल गर्न बोर्डले नियमावली संशोधन गरेर लाइसेन्स दिन सुरु गरेको आरोपमा अधिवक्ता दीपकविक्रम मिश्रले रिट दायर गरेका थिए । संशोधित नियमावलीको कार्यान्वयन तत्काल रोकिनुपर्ने भन्दै अदालत पुगेका मिश्रले प्रधानमन्त्री तथा मन्त्रीपरिषद्को कार्यालय, अर्थ मन्त्रालय, नेपाल धितोपत्र बोर्ड, नेपाल स्टक एक्सचेन्ज लिमिटेडलाई प्रतिवादी बनाउँदै १ कात्तिकमा सर्वोच्चमा रिट दायर गरेका थिए ।

बोर्डले सोही आदेशको पालना गर्दै मंगलबार लाइसेन्स प्रक्रिया रोकेको जनाएको छ । धितोपत्र बोर्डले धितोपत्र बजार सञ्चालन नियमावली २०६४ र धितोपत्र व्यवसायी नियमावली २०६४ संशोधन गरी नयाँ लाइसेन्स दिने प्रक्रिया सुरु गरेको थियो । त्यसका लागि धितोपत्र बोर्डले गत असोज २ गते आवेदन मागेको थियो ।

Sebon mulls over licensing a new stock exchange

The government is planning to give licence to a new stock exchange before the election.

The Securities Board of Nepal (Sebon) has approved the amendment to the Securities Market Operation Regulations 2007 last week and sent it to the Finance Ministry for ‘further processes’. The ministry will then present it to the cabinet for final approval. The government is in haste to give licence to a new stock exchange as the election is nearing, and many smell huge money behind it.

The amendment to the Securities Markets Regulations 2007 has increased the paid-up capital by 6 times to Rs 3 billion from the existing Rs 50 million, the board confirmed, adding that other institutional investors, except the banks and financial institutions (BFIs), can also invest in the new exchange. At present, only banks, financial institutions, securities traders and listed organisations can invest in shares of the stock exchange. “Any private and public limited company can invest in the new stock exchange company that will be a complete private entity,” the amendment reads.

Likewise, the investor can hold up to 15 per cent of the shares in the new stock exchange, unlike the current rule of 10 per cent, according to the amendment. Investors can hold up to 15 per cent stakes in banks and financial institutions, and also insurance company. “Thus, the board has followed the banking and insurance regulator,” justified the board. However, an individual investor cannot invest.

There are two schools of thought on necessity new stock exchange; for a small market like Nepal. One claims that there is no need of another stock exchange, and the other claims that private stock exchange can make the current Nepal Stock Exchange (Nepse) more competitive.

Some business groups are lobbying for a new stock exchange, whereas the government has long been planning, without success, to divest its stakes in Nepse and make it a complete private entity. And providing licence for a new stock exchange before election also raises eye brows. Today, addressing a programme in Kathmandu, CPN Maoist (Centre) chair Puspa Kamal Dahal ‘Prachanda’ said that his party needs money to win election, and the capitalists has money.

“That’s why the controversial Janardan Sharma has been reappointed as finance minister for the second time, giving a clearance from the parliamentary probe committee after the CCTV scam on the night of budget,” informed a source at the Finance Ministry. “The purpose of giving clearance to Sharma and reappointment as finance minister will be seen in the days to come,” the source added.

The board, however, cites an expanding volume of the stock trading recently, and stakeholders demand to give license to a new stock exchange.

Currently, there is only one stock exchange, Nepal Stock Exchange (Nepse), where securities like stocks and bonds are traded. The Nepal Stock Exchange (Nepse) – also the front line regulator of securities trading in the country – has 58.66 per cent stake of the government, 14.60 er cent stake of Nepal Rastra Bank (NRB), 10 per cent stake of Employees Provident Fund (EPF), and 6.14 per cent of Rastriya Banijya Bank (RBB).

नयाँ स्टक एक्सचेन्ज संचालनको अनुमति दिन माग

निजी क्षेत्रले नयाँ स्टक एक्सचेन्ज संचालनको अनुमति दिन धितोपत्र बोर्डसंग माग गरेको छ । 

हाल संचालनमा रहेको स्टक एक्सचेन्जले संचालनको लामो अवधिमा समेत बजारको आवश्यकता बमोजिमको पुर्वाधार व्यवस्था गरि कारोवार प्रणालीलाई समस्यारहित, सहज, सरल, विविध प्रकारका धितोपत्र कारोवार गर्न नसक्दा सम्पूर्ण धितोपत्र बजारको विकासमा प्रतिकुल असर परिरहेकोले यसको निजीकरण तथा सशक्तिकरण गर्नुका साथै व्यापक सहभागिता रहने र अन्र्तराष्ट्रियस्तरका सुशासन मापदण्ड बमोजिम संचालन हुने गरि अर्को एउटा स्टक एक्सचेन्ज संचालनका लागि अनुमति प्रदान गर्न निजी क्षेत्रले माग गरेको हो ।

साथै, दीर्घकालिन रुपमा बैंकिङ्ग क्षेत्रको कुल कर्जामा सुचिकृत धितोपत्रमा दिईने कर्जाको सिमा, धितोपत्रको मूल्यमा कर्जाको सिमा तथा कर्जा प्रयोजनको लागि औशत धितोपत्र मूल्य गणना विधि तथा यस्तो कर्जामा जोखिम भार सम्बन्धमा गहन अध्ययन गरि उपयुक्त हुने तथा कहिल्यै परिवर्तन गर्न नपर्ने नीति अवलम्बन गर्न पनि नेपाल चेम्बर अफ कमर्शले नेपाल राष्ट्र बैंकसंग पनि माग गरेका छ । यसो गरेमा नीतिगत स्थायीत्व रहने तथा नीतिगत अस्थिरताको अवस्थामा नीतिगत तहमा पहुँच हुनेबाट बजारमा हुनसक्ने चलखेलको अन्त्य हुने तथा लगानीकर्तामा समेत नीतिगत स्थायीत्वको कारणले बजार प्रतिको विश्वासमा अभिबृद्धि भृएका कारण आफ्नो लगानी रणनीति तय गर्न सक्ने अवस्था रहने पनि चेम्बरले जनाएको छ ।

धितोपत्रका बिभिन्न औजारहरु कारोबारमा ल्याउँदा सोबाट हुने लाभमा कर लाग्ने व्यवस्था गर्दा लावान्धितबाट लिईने व्यवस्था गरि धितोपत्र औजारको विविधिकरणलाई प्रोत्साहन गर्न सुझाव दिएको छ ।

पुँजी बजारको बिकासका लागि सरोकारवाला सरकारी निकायमा बिभिन्न नीतिगत सुझाव पेश गर्दै नेपाल चेम्बर अफ कमर्सले धितोपत्र बजारबाट पुँजी निर्माणलाई प्रोत्साहन हुने गरि अन्तर्राष्ट्रिय स्तरमा प्रचलनमा रहे बमोजिम बिभिन्न कोषहरु सञ्चालनका लागि कर सम्वन्धमा यथोचित व्यवस्था गर्न चेम्बरले अर्थमन्त्रालयसंग माग गरेको छ  ।

चेम्बरले अर्थमन्त्रालय, नेपाल राष्ट्रबैंक एवं नेपाल धितोपत्र बोर्डलाई छुट्टाछुट्टै नीतिगत सुझाव पेश गर्दै पुँजिबजारको स्थिरता तथा लगानीमैत्री वातावरण सिर्जनाका लागि चेम्बरका तर्फबाट विभिन्न सुझावहरु पेश गरिएको अध्यक्ष राजेन्द्र मल्लले बताए । बिभिन्न कारणले पछिल्लो समय पुँजी बजार धरासायी बन्दै गएको एवं लगानीकर्ताहरु निकै समस्यामा परेकाले समाधानका लागि सरोकारवाला तीन वटै निकायमा छुट्टा छुट्टै सुझाव पेश गरिएको उनको भनाई छ । 

चेम्बरले नेपाल राष्ट्रबैंकलाई पनि छुट्टै तीन वुँदे सुझाव दिएको छ । मौद्रिक नीति सार्वजनिक गर्नुअघि पुँजीबजारलाई सम्वोधन गर्नुपर्ने विषय समावेश गरिएको अध्यक्ष मल्लले बताए । साथै, चेम्बरले धितोपत्र बोर्डलाई छुुट्टै १० वुँदे सुझाव समेत पेश गरेको छ । अन्तराष्ट्रिय प्रचलन बमोजिम धितोपत्र बजारसंग सम्वन्धित सम्पुर्ण नीतिगत, कार्यगत तथा प्रणालीगत सुधार गर्नुपर्ने चेम्बरको सुझावमा उल्लेख छ  ।

धितोपत्र बजारका पुर्वाधारहरुको उचित व्यवस्था गरि अन्तराष्ट्रिय बजारमा प्रयोगमा आएका विभिन्न प्रकारका धितोपत्र औजारहरु जारी गर्न सक्ने व्यवस्था तत्काल गर्न समेत चेम्बरले धितोपत्र बोर्ड समक्ष आग्रह गरेको छ । 

अन्तर्राष्ट्रियस्तरमा प्रचलन रहे बमोजिम धितोपत्र बजारसँग सम्बन्धित सम्पूर्ण नितिगत, कार्यगत तथा प्रणालीगत तथा पुर्वाधार व्यवस्थाका सम्बन्धमा एक स्थायी प्रकृतिको विशेष समिति बनाई गहन अध्ययन गर्ने र उक्त समितिमा बजारसँग सम्बन्धीत विशेषज्ञ तथा बजारका सेवा प्रदायक संस्था र अन्य सरोकारवाला संस्थाको समेत सहभागितामा आवश्यकता बमोजिम विद्यमान नितिगत व्यवस्थामा सुधार गर्ने तथा नर्या नितिगत व्यवस्था गर्ने कार्य तत्काल अगाडि बढाउन पनि चेम्बरले आग्रह गरेको छ । 

विशिष्टिकृत लगानी कोष नियमावली, २०७५ बमोजिम कोष स्थापना तथा संचालनका लागि आवेदन दिएको लामो समय व्यतित भइ सक्दा पनि अनुमति प्रदान हुन नसकेकोले अन्यौलको अवस्था रहेको सन्दर्भमा आवेदनकर्ता संस्थाहरुलाई विना शर्त तत्काल अनुमति दिईनुपर्ने तथा कोष शिघ्र दर्ता हुने व्यवस्था गर्न, जारी भएका नियमावलीका मापदण्ड पुरा गरी धितोपत्र व्यवसाय गर्न आवेदन दिएका संस्थाहरुलाई तत्काल अनुमति प्रदान गरी अन्य संस्थाहरुलाई अनुमति दिने वा नदिने सम्बन्धमा यथोचित अध्ययन गरि नीतिगत व्यवस्था गर्न तथा यस सन्दर्भमा  नियमनकारी निकायको नीतिगत स्पष्टताको अभावको निर्णयमा पुग्न बिलम्व हुने अवस्था सृजना नगर्न पनि चेम्बरले धितोपत्र बोर्डलाइृ सुझाव दिएको छ । 

धितोपत्र बजारमा लाग्दै आएको नियामकीय लगायतका विभिन्न शुल्कहरुको अध्ययन गरि उचित हेरफेर गर्नुपर्ने साथै विभिन्न ब्यवसाय तथा सूचिकृत कम्पनीहरुको वार्षिक नविकरण गर्नुपर्ने झण्झटिलो ब्यवस्था हटाउन पनि चेम्बरको आग्रह छ । 

Nepse drops to close below 1,900 points at an 18-month low

The share market has come down to 18 months low below 1900 points, due to selling pressure.

Nepal Stock Exchange (Nepse) today witnessed a fall of 49.31 points to close it below 1,900 points, an 18 months low mark.

In the two days of trading this week, the market has dropped by over 86 points, according to the Nepse.  The market that opened at 1,934.11 points today went to free fall and closed at 1,884.81 points at the closing of the trading. All the sub-indices – the entire 13 groups – witnessed loss in the day’s trading.

The sensitive index that measures the performance of blue chips shares also went down by 7.66 points,  the Nepse said, adding that today witnessed a turnover of Rs Rs 1.75 billion, an increase from Rs 1.13 billion of yesterday. 

Prabhu Bank promoter share bagged the largest transaction of Rs 118.32 million among individual companies, whereas Terhathum Power Company lost the highest per cent in its share value, and Andhikhola Laghubitta Bittiya Sanstha become the highest gainer of the day.

Tight liquidity pulls Nepse downs by 114.02 points

The Nepal Stock Exchange (Nepse) index today plunged by 114. 02 points -- some 4.05 per cent fall -- to close at 2,698.25 points due to tighten liquidity.

With a fall of three digit, Nepse has gone below 2,700 points in five months. On April 22, Nepse crossed the benchmark.

The first trading day of the week also witnessed sensitive index and float index also drop as the sensitive index closed at 506.27 points and float index closed at 188.70 points.

The entire 13 sub-groups landed on red, though four scrips advanced while all the other scrips declined in today's trading, according to the Nepse. Sunday also witnessed a total of 17,330,538 units of shares of some 225 companies being traded at Rs 8.49 billion. 

The share market has seen volatility in the past few weeks after central bank tightened noose on loan against shares. With tightening of the lonable fund and interest hikes the share market is expected to drop even more.

Nepse up slightly after three days of freefall

The share market freefall stopped today as it gained 17.60 points to close the market.

The Nepal Stock Exchange (Nepse) index climbed above 3,100 mark again to close the market at 3,094.05 points, up by 17.60 points from the morning's opening.

Earlier, on Monday, Tuesday and Wednesday, the market witnessed a sharp decline of more than 120 points. Hydropower, development bank and finance stocks helped the index recoup the recent losses partially. With the market gain, some Rs 13 billion worth of equities changed hands today, the last trading day of the week.

Hydropower stocks rose by 5.08 per cent, followed by development bank and finance companies groups, which shot up by 4.17 per cent and 3.82 per cent. Likewise, microfinance and hotels and tourism sectors also gained, but life insurance sector lost around 1 per cent today.

Of the traded companies today, Arun Valley Hydropower's stake was traded the most with a turnover of almost Rs 1 billion, whereas Arun Kabeli Power and Ridi Hydropower with Rs 450 million and Rs 345 million today.

Some 8 companies including Narayani Development Bank, Shree Investment Finance, Guheshwori Merchant Bank and Finance, Arun Valley Hydropower, Corporate Development Bank, Ankhu Khola Jalvidhyut Company, Ghalemdi Hydro and Jeevan Bikas Laghubitta Bittiya Sanstha witnessed upper circuit limit of 10 per cent.

But Life Insurance Company Nepal dropped by 3.33 per cent followed by Shivam Cements, which fell by 2.30 per cent.

Nepse hits yet another record

 The Nepal Stock Exchange (Nepse) index today reached yet another all time high to 2,820 points as it gained by 32.81 points today from last Thursday's closing.

Likewise, the sensitive index increased by 8.23 points to close at 507.20 points, according to the Nepse. "The volume of total transactions stood at Rs 11.60 billion as over 25 million units of shares of the total 220 companies were traded on the first trading day of the week. This is second only to the highest turnover of Rs 11.96 billion created last week.

Likewise, Nepal Reinsurance Company has the highest individual scrip turnover of a little over Rs 418.60 million, when over a dozen scrips have technically closed at the upper limit of 10 per cent gain today. Ru Ru Jalvidut Pariyojana Limited (RURU), however, lost the most of 3.73 per cent. 

The development banks sub index gained an impressive 7.54 per cent while finance sub index gained an equally magnificent 6.76 per cent but microfinance sub index lost the most 0.37%.

The share price of Sangrila Development Bank increased by 9.93 points while United IDI Mardi Hydropower 9.93 points, Kalika Power Company 9.86 points, Best Finance Company 9.85 points, Goodwill Finance 9.85 points, Saptakoshi Development Bank 9.84 points and Barun Hydropower 9.84 points.

Nepse ends on a fresh high

The share market closed with a new historic high on Monday. The index had created a new high just yesterday.

Nepal Stock Exchnage (Nepse) index closed 1.13 points up to 2,658.75 points, confirmed the Nepse. The market has scaled the new high after seven weeks, though it has posted gain yesterday too. But the turnover dropped to Rs 7.30 billion. Yesterday, the market witnessed over Rs 9 billion worth trading of shares. 

Some 15,853,993 shares changed hands through 73,598 transactions. The trading of 212 scrips brought the total market turnover to a little over Rs 7.29 billion.

Trading, and hotels and tourism indices led the list of top gainers with sub-groups surging by 4.39 per cent and 3.24 per cent, respectively. Likewise, hydropower and ‘others’ sub-indices also rose over 1 per cent each. Microfinance, manufacturing and processing, and mutual fund sectors inched higher in the market, where investment and non-life Insurance groups lost some 0.84 per cent and 0.75 per cent. Banking, development bank, life insurance and finance sectors also ended marginally lower.

Shares of Upper Tamakoshi Hydropower were traded the most with turnover of Rs 348 million, whereas IME General Insurance and Nepal Infrastructure Bank followed with turnover of Rs 313 million and Rs 289 million.

While the float index lost 0.18 points and closed at 182.75 points, the sensitive index is at 471.84 after gaining 1.09 points.

The new 'investment subgroup' fails to push Nepse

The new subgroup created by the Nepal Stock Exchange (Nepse) that came into practise today failed to push the share market index as the market came under selling pressure.

Nepse closed the market with 79.74 points lower to 2,474.39 points from Thursday's closing, a 3.12 per cent drop on the first day of the trading week.

The stock market has added one more subgroup -- making the total 13 subgroups -- from today shifting some four companies from the others subgroup. The new subgroup 'investment' has Citizen Investment Trust (CIT), Hydroelectricity Investment and Development Company (HIDCL), Nepal Infrastructure Bank (NIFRA), and NRN Investment and Development Company (NRNA).

The Nepal Infrastructure Bank was traded under development bank subgroup on the first day, and was shifted to others subgroup, the very next day. However, after a week, today it was traded under the investment subgroup. The 'indecision' by the Nepse has always given room to suspect Nepse index and total market capitalisation, as they have also not been transparent in calculations. Though, Nepse claims that the regrouping and adding the subgroup will not impact the Nepse index, the index and market capitalisation has been under scanner since long.

The Nepse has also renamed the hotels subgroup to hotels and tourism, and shifted Chandragiri Hills to the subgroup that already has Soaltee Hotel, Oriental Hotels (Radisson), Taragaon Regency Hotel and Yak and Yeti Hotel, though the Yak and Yeti Hotel had long ago asked itself to be delisted,

Though, the share market has 13 subgroups, and it produces 17 indices everyday from today, the market crumbled to below 2,500 points level for the first time since early February. However, the total turnover stood at Rs 8.35 billion today.

All the major sectors closed the day with notable loss, except hotels and tourism sector that gained due to Chandragiri Hills. The investment sector fell the most -- by 4.2 per cent -- in its maiden trading day today, whereas others, manufacturing and processing and life insurance sector fell over 3.5 per cent. 

Shikhar Insurance Company was traded the most after the non-life insurer called for its annual general meetings (AGMs) for the years 2018-19 and 2019-20. Approval of bonus shares, issuance of right shares and increment of its authorised capital lured the investors. Of the total Rs 8.35 billion trading of shares today, Shikhar Insurance Company witnessed over Rs 1 billion worth of its stocks being traded. Likewise, Nepal Infrastructure Development Bank saw a turnover of Rs 635 million, followed by Global IME Bank (Rs 340 million), Nepal Reinsurance Company (Rs 286 million) and Nepal Life Insurance Company (Rs 257 million), according to the Nepse. 

Share market gains 15.5 points to close at a new historic high

 Domestic share market is on fire as it is scaling new high every day.

Today – the third day of transaction in this week – the Nepal Stock Exchange (Nepse) index gained 15.50 points to close the market, above the psychological 2,600 mark, at 2601.51 points which indicates that bulls still have more legs for upside movement.

The index opened at 2,615.36 points and went on to make an intraday as high as at 2,631.37 points but the index also went down as low as 2,584.14 points, ultimately closing at 2,601.51 points.

“Some 17,732,765 shares traded hands through some 76,493 transactions,” according to the Nepse that recorded trading of 208 scrips, with a total market turnover to a little over Rs 10.03 billion. “While the float index gained 1.68 points and closed at 179.04 points, the sensitive index closed at 473.53 points after gaining 4.09 points. 

The domestic equity market rallied on banking sector, which ended 2.08 per cent higher, followed by mutual fund, others and development bank sector, but manufacturing and processing, hydropower and trading, hotels, finance, non-life insurance, microfinance and life Insurance segments lost.

Though, the investors continued to show notable buying enthusiasm in the market, the total turnover could not cross yesterday’s. Today the total turnover crossed Rs 10 billion mark, little less than yesterday’s. Tuesday saw shares of Nabil Bank and Global IME Bank being traded the most. Over Rs 544 million and 425 million worth shares of these banks changed hands, followed by Nepal Bank Neco Insurance, NIC Asia Bank and Shikhar Insurance, with turnovers of Rs 391 million, Rs 373 million, Rs 336 million and Rs 305 million, respectively. Likewise, Himalayan Distillery, Siddhartha Bank, NMB Bank and Kumari Bank are other heavily traded scrips Tuesday.

Likewise, Chandragiri Hills, Nepal Infrastructure Bank, Mirmire Microfinance Development Bank, Corporate Development Bank, Sunrise First Mutual Fund and Himalaya Urja Bikas Company locked in the upper circuit limit with above 9.5 per cent each, according to the Nepse.

Meanwhile, shares of Sadhana Laghubitta Bittiya Sanstha came under pressure and dropped by 6.15 per cent, followed by Panchthar Power Company, Barun Hydropower Company, Swabhimaan Laghubitta Bittiya Sanstha, which witnessed 5 per cent lower trade.

Hydropower stocks to rain share market

 Though, the hydropower sector is not yet dominant in the share market, some 10 more hydropower companies are going public soon.

According to the Securities Board of Nepal (Sebon), some 15 companies – including 10 hydropower companies are issuing their Initial Public Offerings (IPOs) worth Rs 5.15 billion. “Among the 15 companies in the pipeline to issue public shares, some 10 are hydropower companies, one life insurance company, one merchant bank and 3 other companies.”

Though, the domestic share market is dominated with the banks and financial institutions, there are noticeable large number of hydropower companies floating their shares and listing in the secondary market recently. As the demand for shares in the market has doubled, the price of hydropower share has also increased recently. 

According to the Sebon, Madhya Bhotekoshi Jalabidhyut, Nyadi Hydropower, Bindhyabasani Hydropower, Sahas Urja, Emerging Nepal, Himalayan Hydropower, Buddha Bhumi Nepal Hydropower, Samling Hydropower, Dish Media Network, CBIL Capital, Terhathum Power Company, Shuvam Power, Mallung Khola Jal Bidhyut, Jyoti Life Insurance, and CEDB Hydropower Development are floating share soon.

Nepse suspends shares trading of 11 firms

 Frontline regulator of the share market, Nepal Stock Exchange (Nepse), today suspended some 11 companies from their shares being traded.

According to a decision taken today by the board of the Nepse, the trading of shares of 7 hydropower companies, one life insurance company, one development bank, and two microfinance companies has been suspended. “The trading has been suspended in response to the letter sent from Securities Board of Nepal (Sebon), the capital market regulator,” confirmed the Nepse.

The Nepse suspended the trading of shares of Nepal Hydro Developer Limited (NHDL), Panchakanya Mai Hydropower Limited (PMHPL), Panchthar Power Company Limited (PPCL), Radhi Bidyut Company Limited (RADHI), Universal Power Company Limited (UPCL), Rairang Hydropower Development Company Limited (RRHP), Union Hydropower Company Limited (UNHPL), Gurans Life Insurance Company Limited (GLICL), Karnali Development Bank Limited (KRBL), Kalika Laghubitta Bittiya Sanstha Limited (KMCDB) and National Microfinance Laghubitta Bittiya Sanstha Limited (NMFBS), according to a press note issued by the Nepse.

The listed companies must submit their annual reports to Nepse and Sebon within the specified time frame. “The listed companies that fail to submit the necessary documents on time can be suspended from trading by Nepse,” the press note reads, adding that the 11 companies that are suspended as they failed to submit their respective annual report of the fiscal year 2075-76 to the regulatory body on time.

Banks push equity market to a new high

 Fuelled by the banking index, the Nepal Stock Exchange (Nepse) index posted another record high of 2,440.87 points to close the day’s trading. The second trading day of the week, the Nepse index gained 16.04 points to close the trading at 2,440.87 points, according to the Nepse.

The day witnessed almost Rs. 9 billion worth of securities trading where almost all the sectors ended in green zone. Trading sector led the market with the sub-index rallying by 3.14 per cent, whereas others’ and banking sub-indices also saw shot up by 1.63 per cent and 1.39 per cent. Likewise, non-life insurance and mutual fund sub-indices gained but microfinance and hotels sectors lost as they dropped by 1.21 per cent and 1.18 per cent, respectively.

Some 19,285,504 shares traded hands via 72,773 transactions with the trading of 208 scrips being traded today. While the float index gained 1.11 points and closed at 166.49.38, the Sensitive index lost 0.24 points to close the market at 451.82 points.

As always, shares of Nepal Life Insurance continued to lead the list of active stocks. Over Rs 603 million worth of the life insurance shares changed hands, followed by Nabil Bank, NCC Bank and NIC Asia Bank with turnovers of Rs 331 million, Rs 313 million and Rs 297 million. 

Likewise, Citizen Investment Trust (CIT) shot up by 10 per cent for a second straight day, followed by Gurans Laghubitta, Prabhu Life Insurance, Mountain Energy Nepal, National Hydropower Company and Himal Power Partner also rallied more than 9 per cent each. Gurkhas Finance, Rastriya Beema Company, NRN Infrastructure and Development and Nepal Bank are also some of the key gainers.

The Nepse index that has been breaking records and creating new highs almost every day since last couple of months, opened at 2,447.01 but ultimately closed at 2,440.87 points.

Nepse index nears 2400 mark

 The share market index (Nepse) today gained 31.87 points to close at 2,374.64 points, the highest closing-ever in the history of domestic equity market.

The Nepse index has been breaking records and creating new highs, which seems not stopping, since a month due to cheap bank loan and lack of investment opportunities.

The market opened at 2,372.86 points today, and index went as high as 2,376.13, ultimately coming down and closing at 2,374.64 points,, according to the Nepal Stock Exchange (Nepse).

Some 18,105,671 shares changed hands via 69,333 transactions today to also record the trading of over Rs 7.79 billion with the trading of some 209 scrips. While the float index gained 2.1 points and closed at 162.44 points, the sensitive index closed at 445.59 points after gaining 2.59 points.

Biggest IPO closes with highest volume of applicants

Nepal Infrastructure Bank has closed its primary shares issue – biggest public offering in the history of domestic capital market – from today with the largest applications for the Initial Public Offering (IPO).

NIBL Ace Capital – the issue manager for the IPO issuance and Citizen Investment Trust (CIT) – confirmed the closing of the largest primary share offerings from today. According to the issue manager, in total 15,12,823 applicants have applied for 17,99,31,410 units of shares. “The number might be a little more after the final calculations.”  

After the IPO issuance, the bank’s paid-up capital will be Rs 20 billion from the existing Rs 12 billion. The bank has issued some 8,00,00,000 units worth Rs 8 billion as IPO to the general public from Jan 15.

Out of the offered 8,00,00,000 units, some 0.20 per cent of the shares or 1,60,000 units have been set aside for the employees of the bank and 5 per cent or 40,00,000 units have been set aside for the mutual funds. The remaining 7,58,40,000 units are for the general public, according to the issue manager.

The second annual general meeting of the bank had endorsed and approved the issuance of IPO. The bank established to serve and benefit from investment in significant infrastructure projects like hydropower projects, road infrastructures, was though the largest in terms of paid up capital when it was established, some other commercial banks have also reached around Rs 20 billion paid up capital as of today, making it look smaller.

Nepal Infrastructure Bank's profit declined by 12.43 per cent to Rs 181 million in the first quarter of the current fiscal year 2020-21. The bank’s annualised earning per share stands at Rs 6 and net worth per share stands at Rs 115.

Nepse crosses 2300 mark

 Nepal Stock Exchange (Nepse) index looked up to record yet another historic high today, the first trading day of the week.

The index climbed by 28.46 points to close the equity market at 2,315.01 points today, making afresh historic high. The Nepse ended in green for the seven consecutive day where it added almost 150 points in total to cross the 2300 mark. Driven by high liquidity and low interest rates in the banking industry, the share market also witnessed a turnover of over Rs. 6.37 billion, according to the Nepse.

Though, the trading sector led the broader market with sub-index shooting up by 9.24 per cent tne development bank, ‘others’ and microfinance stocks also saw strength with the respective averages rallying 4.61 per cent, 3.40 per cent and 3.19 per cent. The finance and life insurance sectors also witnessed a buying pressure. Except the hydropower sector, all other composite sectors ended in green.

In terms of individual stocks, Nepal Telecom led the market with whopping turnover of Rs 581 million, followed by NIC Asia Bank, Civil Bank and Nepal Reinsurance Company with transactions of Rs 229 million, Rs 210 million and Rs 187 million respectively. Likewise, Neco Insurance, Nepal Bangladesh Bank and Prabhu Bank were among other heavily traded stocks.

Salt Trading Corporation led the day’s gain and jumped exactly by 10 per cent, followed by Gurans Laghubitta Bittiya Sanstha, Narayani Development Bank, Corporate Development Bank, Samudayik Laghubitta Bittiya Sanstha, Prabhu Life Insurance and Kisan Laghubitta Bittiya Sanstha also remained closed the trading with hitting a upper circuit limit of positive 10 per cent.

Some 15,035,221 shares traded hands via 50,607 transactions with 208 scrips. While the float index gained 1.4 points and closed at 157.91, the sensitive index closed at 443.42 points after gaining 8.17 points.

A total of 11 companies have technically hit a 10 per cent positive circuit today.

Stock market regulator approves T+2 settlement system

 Securities Board of Nepal (Sebon) has reduced the settlement and clearance system time to T+2 from current T+3 to encourage more trading hoping that the exchange will be more dynamic with a faster settlement system.

The move – that was mentioned by the regulator on it’s to-do list of for the fiscal year 2077-78 – is expected to please the stock traders as they will now get paid within the two days of the trading. The regulatory body approved the T+2 due to increasing use of technology in the stock market and international practice, according to the Sebon.

The CDS and Clearing (CDSC) Ltd had submitted a proposal to the regulator to change the current settlement T+3 system to T+2, a press note from the Sebon reads, adding that it has approved the proposal. 

T+3 means that it takes 3 days for the settlement of securities traded as the buyers receive the shares that they buy in about three days. But with the Sebon’s approval of T+2 system, the settlement process for the shares traded will hopefully take lesser time, the press note adds.

It is a frequent complaint from investors that they do not get the shares – in case of buying – and payment – in case of selling – on time. Even under the current system – the T+3 system – the clients have not been able to receive their payment within three days neither have they been able to get paid within a week. However, the authorities have claimed to improve and speed up the settlement system convincing the investors, who still do not believe.

The CDSC said that the T+2 system will be implemented after it issues a public notice addressing all the grievances.

Nepse inches closer to pshycological 2,200 mark

 Nepal Stock Exchange (Nepse index inches close to a pshycological 2,200 points as it witnessed a double digit growth today to close the last trading day of the week with a new record.

After climbing 15.91 points today, the Nepse index closed at 2,194.49 points, making a new historic high, according to the Nepse. The buying pressure, despite the Constitutional crisis and seemingly political instability, has pushed the total turnover of over Rs 5.87 billion. Of all the sub-indices, trading sector saw considerable strength as it rose by 4.79 per cent, followed by manufacturing & processing sub-index that gained 2.06 per cent. Likewise, non-life insurance, microfinance and finance sectors posted 1 per cent gains each. But the others sector lost, though marginally, the Nepse data reveals.

In terms of market activity, Prabhu Bank’s shares witnessed the highest trading with a turnover of Rs 317 million, followed by Nepal Reinsurance Company (with Rs 274 million) and Chilime Hydropower Company (with Rs 248 million). Nepal Life Insurance Company, NIC Asia Bank and Himalayan Distillery are also the other top turnover stocks today.

However, Multipurpose Finance Company registered the biggest percentage gain of the day as its share price rallied by 10 per cent. Mirmire Laghubitta Bittiya Sanstha, IME General Insurance, Narayani Development Bank and Prabhu Life Insurance Company’s shares also saw notable buying pressure with each of these scrip rallying over 9 per cent, each.

The continuous rise in the share price in the domestic market – despite the Constitutional crisis and political instability – is attributed to the cheap interest rate and lack of other investment instruments. The interest rate in fixed deposit – as of today – hovers around 7 per cent forcing the people to invest in share.

Nepse hits yet another historic all time high record

 Despite the political uncertainty and constitutional crisis, the share market is every day climbing another peak. The Nepal Stock Exchange (Nepse) index today also created a record new high as it went up by 4.22 per cent or 88.12 points to the day’s trading with all-time high of 2.175.39 points.

Today – the first day of the trading week – also witnessed a total turnover of Rs 6.34 billion, which was achieved through trade of 14, 026,886 units of shares of 212 listed firms through 54,698 transactions, according to the Nepse.

The change in the leadership of Finance Ministry, who is totally in favour of stock market, and the cheap interest rates fuelled the share market, according to the financial analysts. The interest rates of fixed deposit hover around 7 per cent, which is very low compared to the return on the investment on share. Thus, the changing political scenario has also ne been able to deviate the upward stock market movement.

Along with the Nepse, sensitive index also went up by 4.31 per cent (17.18 points) to close the market at 415.88 points, and float index also increased by 4.1 per cent (5.82 points) to 147.74 points today, according to the date published by the Nepse, the front line regulator. “All the subgroups witnessed growth as trading subgroups gained by massive 9.64 per cent or 221.57 points to 2,520.67 points and others sub-index by 6.19 per cent or 103.44 points to 1775.36 points,“ the Nepse data revealed, adding that banking, manufacturing and life insurance sub-indices also saw growth by above four per cent.

The index has not only successfully broken away from the long-maintained resistance zone at 2,100 levels, it also gained aggressively throughout the day.

Nepal Life Insurance Company Ltd (NLIC) has the highest individual scrip turnover of a little over Rs 509.50 million, whereas the shares of Prime Commercial Bank Ltd (PCBL) traded the most as today was the last chance for investors to grab the shares of PCBL and claim its 15 per cent dividend. Some five listed commercial banks including PCBL’s share will be not traded till their annual general meeting by next week.