Banking Blue Chips Demand on Spotlight

Nepal Stock Exchange slightly ticked to higher end on Wednesday, primarily led by banking scrip. The trading screen experienced pockets of green symbols for second day in a row after plunging down for previous five straight sessions. The modest scale of the day's surge suggested that investors are cautioned in demanding stocks from the market that has spent more time in reverse direction due to various weigh news. In a volatile session, the benchmark Nepse index settled at 599.50, yet below psychological level of 600, adding 0.70 points or 0.12 percent.
Declining stocks narrowly outpaced advancing ones with 26 gainers and 32 losers at three hours trade where volume came to lighter of Rs. 40159252 compared with Rs. 48828426 at the same time Monday. "Even though stock market endow with spurring gain after continuous tumble, it's not only complex but hoodwink to believe that market has got the opening start of the long rally on thinner trade like this" viewed market analyst.
Blue chips scrip from commercial banks as Standard Chartered (Rs. 3571, +Rs. 61), Nabil Bank (Rs. 2830, +Rs. 65), Bank of Kathmandu (Rs. 1605, +RS. 65), Everest Bank (Rs. 2206, +Rs. 6) along with other key banking stocks experienced higher share price to escort banking index to 584.29 putting on 4.54 points or 0.78 percent. Except BOK, named above banks has already declared dividends from the profit of fiscal year 2008/09. SCB declared 50% cash and 50% stock dividend, Nabil proposed 50% stock and 35% cash and EBL to give 30% stock and 30% cash dividend as a reward to shareholders from the profits.
Development bank index zoomed meager of 1.73 points or 0.27 percent to 653.51 on positive pricing of Pashupati Dev. Bank (Rs. 520, +5.05%), Sanima Dev. Bank (Rs. 570, +1.79%) along with others. However, hydro sector plummets hefty of 20.97 points or 2.51 percent to 813.59 triggered by downfall in price of Chilime Hydropower (Rs. 1023, -Rs. 57) and National Hydropower (Rs. 84, -Rs. 2). Finance declined 2 points to 626.43 along with 6.52 dropped down in insurance sector.
The puff up in demand of key commercial bank led domestic blue chip or sensitive index to close at 151.26 with surge of 0.71 points or 0.47 percent. 14 commercial banks, 37 finance companies, 15 development bank, 10 insurance companies and one each from hydropower and manufacturing companies are included in sensitive index. Similarly, float Index an indicator of performance of ordinary shares in the market rose 0.23 points to 57.40.
Total of 67 companies performed trade in secondary market for 68145 units via 852 transactions maintaining A-D ratio at 0.81. The market capitalization for the day stood at Rs.422563.1 millions up from previous session's Rs. 422068.29 millions.

Jamb Daily News Service