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Poll Results Boost Share Index

  3 min 10 sec to read

--By TC Correspondent
 
Nepse index rose 34 points last Thursday- first trading day after the CA polls- closing at 634.3. The share market observed such an impressive surge on a single day after remaining closed for a week due to the Constituent Assembly (CA) polls.  The trading floor remained open for only one day last week. 
 
The shares transaction took place just for 45 minutes on the day due to the repeated circuit breakers in the market. 
 
Nepse imposed the first circuit breaker within 15 minutes of opening of the market to halt the transactions for 15 minutes when the benchmark index rose by 3 percent.  Another circuit breaker was applied at around 12:29 PM for 30 minutes when Nepse rose by 4 per cent. Though the trading floor was opened later, the transactions were all together halted for whole of the day after 15 minutes through the circuit breaker when Nepse rose by 5 per cent.  
 
Stock analysts say that the Nepse witnessed such growth due to the indication of the preliminary election results of the polls that the democratic forces are dominating the upcoming CA. 
 
CA polls held in peaceful manner than expected and the indication of democratic forces gaining the majority has made positive impact in the securities market, said Meghnath Upadhyay, Chief Executive Officer of Primo Securities Pvt Ltd. 
 
Though the index jumped suddenly as market opened after a long holiday with the news of positive political development due to successful conduct of poll, the market might not rise in similar way in coming days, argued Upadhyaya. 
 
“The market is relatively mature in comparison to the past,” he said, adding that the market will move ahead with utmost restraint.  
 
The growing possibility of the constitution promulgation after the CA polls has also boosted the confidence of the investors.
 
Due to the transactions held in short time period, there were not any transactions of well-known banks except Nabil Bank last week. The share prices of all 55 companies traded last week observed a gain. 
 
While all the sub-indices of all groups surged, the Insurance sector registered a highest gain by 78.36 points closing at 1605.43. Likewise, sub-indices of Hydropower, Others, Banking and Development Banks rose 65.89, 51.68, 38.42 and 2.93 points respectively.
 
Bank of Kathmandu, Nepal Life Insurance Company Ltd, Nepal Bangladesh Bank Ltd, Nabil Bank and Nepal Investment Bank Ltd were the top five highest gainer of the week. 202,698 units of shares of 55 companies through 511 transactions worth Rs 102.6 million were traded during the week.  
 
Indices
 

Nepse on Sunday

The rising trend of the Nepse index for past few trading days continued skyrocketing also on Sunday. Nepse index gained 20.26 points closing at 654.56, while circuit breaker was imposed twice to control the market following the excess gain of 3 per cent and 5 per cent respectively on the first trading day of the week. 
 
All sub-groups, except Others, observed the gain in the market. Insurance sector was the highest gainer among the sub-groups with surge of 109 points settling at 1714.43. The index of Others sector went 4.7 points down closing at 769.52 points.  A total of 1,290,835 units of shares of 94 companies worth Rs 476 million were traded through 2,952 transactions. 

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