Kathmandu: Shares of Nepal Reinsurance Company worth Rs 769.6 million were traded on Monday alone.
Out of the total Rs 5.75 billion turnover recorded on the Nepal Stock Exchange (NEPSE) that day, the company accounted for 13.38 percent of the entire transaction.
At the end of last fiscal year in Asar (mid-July), the company’s share price was around Rs 1,200. In the following month of Shrawan (mid-July to mid-August), both its share price and trading volume surged significantly. Between Asar 32 and Shrawan 18, not only did the company’s share price rise sharply, but trading values also spiked.
During that period, a large number of investors purchased the company’s shares mainly through Broker No. 55. After a slowdown in recent weeks, trading activity in the company’s shares suddenly jumped again on Monday. Along with Broker No. 55, Broker No. 49 also handled a large volume of the company’s share sales.
On Monday, the company’s trading volume rose sharply. Even as over Rs 760 million worth of shares changed hands, its share price still climbed 5.25 percent, closing at Rs 1,649.90. A total of 475,871 shares were traded, with 80,118 shares sold through Broker No. 55 alone.
Similarly, 45,291 shares were sold via Broker No. 49. However, only about 2,000 shares were bought through Broker No. 55, while around 4,000 shares were bought in total.
On the buyers’ side, no single broker accounted for a very large share of purchases. The highest buying was seen through Broker No. 28, which recorded the purchase of 43,000 shares.
In comparison, Nepal Reinsurance had trading worth Rs 240 million on Sunday, Rs 200 million on Thursday, and Rs 250 million on Wednesday of last week. The company’s trading volume had typically ranged between Rs 200–250 million, out of the daily market turnover of around Rs 5 billion.
On Monday, however, even though NEPSE’s total turnover was at its average level, the company’s trading amount jumped to more than three times its usual figure.
This sudden surge has raised curiosity among general investors as to why trading of Nepal Reinsurance shares spiked so dramatically in a single day.
Currently, NEPSE has listed 134.2 million shares of Nepal Reinsurance. Out of this, 16 percent (21.4 million shares) are held by the general public, while 84 percent (112.7 million shares) remain with the company’s promoters.
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