Weak Sentiment Pulls Nepse Down

Stocks at home bourse were solidly lower with blue chips share soften on shabby investors confidence. The benchmark Nepse logged its seventh session straight drop on Thursday to close at 579.58, losing 5.46 points or 0.93 percent. Sell-off marked the investors' sentiment that led secondary market to settle worst for more than 28 months.

Scrip price of companies which has recently declared dividends, as Bank of Kathmandu (40% stock dividend), NIC Bank (15% stock dividend) experienced fall of Rs. 45 and Rs. 61 respectively. This tendency shows that, at temporary phase the market is not running on fundamentals or technical strength but with the investors' sentiment which is absolutely feeble.

Fresh share at market in form of right share and bonus shares has increased the supply side in one hand, on the next IPOs in the market has shifted the investment to risk free and high return rather than plain sailing secondary market. Likewise, political discrepancies along with protest declaration by opposition party U-CPNL (moist) has definitely created an additional leg down in the market.

Selling spree has dragged down the scrip prices of most of the financial stocks that smashed the financial stocks loaded Sensitive index to plunged 1.93 points or 1.31 percent to 145.13. Blue chip scrip at Nepse consists 14 commercial banks, 37 finance companies, 15 development bank, 10 insurance companies and one each from hydropower and manufacturing companies. Likewise, float Index an indicator of performance of ordinary shares in the market was down 0.80 points to 55.26.

Commercial bank shed hefty of 9.02 points or 1.60 percent to 554.61, development bank lost 1.12 points or 0.17 percent to 646.68 while finance slipped 2.80 points to 614.51. Likewise, hydro plummets 3.38 points; however insurance heaved up slightly 0.23 points along with 5.88 points rise in others sectors. Among commercial scrip, NIC Bank (Rs. 754, -7.48%) fronted with the heavy decline along with slump in key banks as Standard Chartered (Rs. 3583, -Rs. 16), Nabil Bank (Rs. 2700, -Rs. 70), Bank of Kathmandu (Rs. 1515, -Rs. 45), Everest Bank (Rs. 1700, -Rs. 89) and so on. Likewise, execution of trade after book closure of Nepal Share markets Limited's Promoter share (Rs. 194, -71.17%), Merchant Finance (Rs. 431, -9.31%) dragged down finance sub index.

Merely 60 companies registered their presence in the secondary market with 13 gainers and 41 losers. The A-D ratio was maintained at 0.32. All in all 152527 shares traded today via 869 transactions. Moreover, Rs. 75312033 turnover was realized along with Rs.407538.89 million market capitalizations. Yesterday, 54727 units' shares traded via 738 transactions amounting Rs. 30385763 turnover along with Rs.412370.06 million market capitalizations. Today's increase in turnover along with down stock index shows that investors stampede to sell shares is at utmost ceiling.

The top five standouts of the day are GFL(4.26%), SBBL( 2.8%), RIBSL( 2.51%), NABBC( 2%), TBBL(1.93%). Whereas, NSMPO(-71.17%), MFCL( -9.83%), BLDBL( -8.77%), NICB( -7.48%), NHPC( -5.95%). comprised of the top five losers.