KATHMANDU, MAR 19, 2012
Nepal Telecom (NT) lost Rs 43 per unit share dragging not only the others sub group under which it is listed but also the overall market index by 7.59 points to close the market at the lowest ever in the last two years at 303.2 points today.
The Nepal Telecom share which was traded at Rs 447 for a unit on Thursday — the last trading day of last week and before book closure — today dropped by Rs 43 to Rs 404 a unit pulling the others subgroup down by 50.51 points to close at 475.87 points.
It covers almost one-fourth of the total market capitalisation — as of today’s trading price — bringing the whole share market down due to the absence of a dividend adjustment mechanism at the share market.
The standard methodology employed by Dow Jones, Standard & Poor’s, Reuters and Bloomberg always adjusts for special dividends plus all of the normal capital adjustments like splits, reverse splits, rights issues, capital returns, demergers and spinoffs but the absence of such a mechanism in the domestic market has always been hurting the confidence of general investors.
Nepal Telecom has announced that it will organise its fourth annual general meeting (AGM) on April 4.
The annual general meeting is also going to approve a cash dividend of Rs 45 per unit share.
At today’s closing price of Rs 443 per unit of Nepal Telecom share, its market capitalisation stands at Rs 66.45 billion which is 23.22 per cent of the total market capitalisation of Rs 286.10 billion.
A slight movement in the share prices of Nepal Telecom changes the direction of the share market due to the existence of 150 million unit shares of the company.
It could send a wrong message to investors that shares of other companies are also not doing well as the benchmark index plunged today, despite efforts by Securities Board of Nepal, Finance Ministry and the central bank to boost the confidence of investors.
Despite the positive and encouraging economic indicators, the share market has not been performing well in recent months. The High Level Financial Coordination Committee tried hard to encourage the investors’ confidence but failed.
Source: THT
Nepal Telecom (NT) lost Rs 43 per unit share dragging not only the others sub group under which it is listed but also the overall market index by 7.59 points to close the market at the lowest ever in the last two years at 303.2 points today.
The Nepal Telecom share which was traded at Rs 447 for a unit on Thursday — the last trading day of last week and before book closure — today dropped by Rs 43 to Rs 404 a unit pulling the others subgroup down by 50.51 points to close at 475.87 points.
It covers almost one-fourth of the total market capitalisation — as of today’s trading price — bringing the whole share market down due to the absence of a dividend adjustment mechanism at the share market.
The standard methodology employed by Dow Jones, Standard & Poor’s, Reuters and Bloomberg always adjusts for special dividends plus all of the normal capital adjustments like splits, reverse splits, rights issues, capital returns, demergers and spinoffs but the absence of such a mechanism in the domestic market has always been hurting the confidence of general investors.
Nepal Telecom has announced that it will organise its fourth annual general meeting (AGM) on April 4.
The annual general meeting is also going to approve a cash dividend of Rs 45 per unit share.
At today’s closing price of Rs 443 per unit of Nepal Telecom share, its market capitalisation stands at Rs 66.45 billion which is 23.22 per cent of the total market capitalisation of Rs 286.10 billion.
A slight movement in the share prices of Nepal Telecom changes the direction of the share market due to the existence of 150 million unit shares of the company.
It could send a wrong message to investors that shares of other companies are also not doing well as the benchmark index plunged today, despite efforts by Securities Board of Nepal, Finance Ministry and the central bank to boost the confidence of investors.
Despite the positive and encouraging economic indicators, the share market has not been performing well in recent months. The High Level Financial Coordination Committee tried hard to encourage the investors’ confidence but failed.
Source: THT
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