NEPSE slips 0.66 percent in three-day trading week

The NEPSE index ended the week at 2,629.81 on Thursday, compared with 2,647.22 a week earlier, a fall of 17.41 points or 0.66 percent. Market capitalisation dropped by roughly Rs30 billion to Rs4.52 trillion. Investors were cautious during a week that had only three trading days, according to The Kathmandu Post. Total turnover for the week came to Rs18.36 billion, 39.3 percent less than the Rs30.26 billion recorded in the previous five-day week. The newspaper noted that the drop was mostly a result of the shorter week: average daily turnover in fact rose to Rs6.12 billion from Rs6.05 billion, suggesting liquidity in the market held up. Of the 13 sectoral indices, only manufacturing and processing rose, gaining 1.13 percent, while mutual funds were flat and the remaining 11 sectors fell. Himalayan Distillery Limited gained 7.19 percent on turnover of Rs960.3 million, Shivam Cements rose 2.03 percent, and Sonapur Minerals and Ghorahi Cement climbed 7.38 percent and 6.64 percent. Laxmi Sunrise Bank was the most actively traded share, with 2.009 million shares worth about Rs500 million changing hands; Kumari Bank and Global IME Bank were also heavily traded. Hydropower and non-life insurance each lost 1.68 percent and finance fell 1.51 percent. Snow Rivers Limited, Mount Everest Power and Yambaling Hydropower were among the largest decliners, down 6.39, 5.75 and 5.50 percent. Nepal Lube Oil was the top gainer for the week, up 14.93 percent to a 52-week high of Rs271.30, while Infinity Laghubitta fell 10.80 percent to Rs950 and Hathway Investment Nepal dropped 9.38 percent to Rs452.90 on turnover of Rs647.4 million. Analysts quoted by the newspaper said recent policy changes could shape trading in the coming weeks. Chartered accountant Manish Aryal pointed to the lower capital gains tax, now 3.75 percent on shares held for over a year and 5 percent on shorter holdings, and to a Nepal Rastra Bank circular of 24 September that lets banks and financial institutions trade listed shares once they have held them for a minimum of 45 days. He said the aim was to bring more institutional money into the market, and that at least seven brokerage firms had started offering margin lending. Investor Subas Chandra Dhungana said daily turnover above Rs8 billion would be needed to sustain a stronger rise, and expected banks to gain as the government's reform plan for the capital market, which has 21 points, comes into force. Analysts are watching 2,660 to 2,680 as near-term resistance, with support around 2,605 and 2,580, the newspaper said.