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Nepse On Four-year-high

  3 min 1 sec to read

 
--By Sagar Ghimire
 
Nepal Stock Exchange (Nepse) index witnessed a four-year record high last week surging 55.43 points and closing at 707.41. The index had last scaled to this point on August 27, 2009, when it reached 708.75 points. 
 
Last weeks surge is interpreted as continuation of the upward trend that started in the capital market some weeks back with the ‘democratic parties’ sweeping the election result.  
 
Nepse index went up all the tradings days last week.  The circuit breaker was used twice on Wednesday and Thursday due to the feverish transactions that sent the index surging with almost all the companies gaining share price hike. 
 
Stock market analysts, however, caution that the decision to invest in a company without any analysis could prove risky.  In recent days, shares price of even those companies that are incurring loss is also rising unusually. In order to avoid the risks, analysts suggest the investors to assess the company’s financial position before deciding to buy the shares.
 
The market registered a total of Rs 2.40 billion turnover last week. 6,732,794 units of shares were traded in the market floor through 14,821 transactions. The turnover, number of transactions and units of shares are 49.18 per cent, 12.12 per cent  and 47.98 per cent higher respectively in comparison to those of last week.  
 
NIC Asia witnessed the largest turnover in the share market last week, while Nabil Balance Fund-1 witnessed the highest transaction. It was Nepal Telecom which remained at the top of the market in terms of the market capitalisation. 
 
Nepse index gained 8.03 points on the first day (Sunday) closing at 651.98. The index continued to surge in the initial trading hour on the second day (Monday)  but eventually declined 9.82 points closing at 661.8. 
 
Nepse index witnessed a double-digit rise by 16 points on Tuesday closing at 677.8 points. The double-digit upward movement continued on Wednesday with Nepse index surging 25 points to settle at 700.8. 
 
All the sub-groups, except Trading and Manufacturing, witnessed an impressive gain during the week. Insurance group gained the highest by whopping 105.18 points. It was followed by Hydropower (up by 82.48 points), Banks (up by 60.26 points) and Development Bank (up by 57.19 points). Likewise, sub-indices of Other, Finance and Hotel groups have also gained by 55.21, 16.19 and 11.3 points. Sub-indices of Trading and Manufacturing remained unchanged. 
 
Out of 138 listed companies, 116 observed a gain, while shares price of 5 companies declined during the week. Shares price of 17 other companies remained unchanged.
 
Nepse Index
 

Nepse on Sunday

Nepse index which was on upward trend for past few weeks, however, dropped 4.73 points on Sunday closing at 702.68. 
 
Sub-indices of Hotels, Hyrdropower and Finance groups observed a surge. The highest gainer was Hotels group with its index up by 24.26 points settling at 1125.14. Hydropower and Finance groups also rose 19.35 points and 1.11 points respectively. Sub-indices of Banking, Development Banks and Insurance groups’ sub-indices went down by 3.69 points, 3.46 points and 38.81 points respectively. 
 
A total of 389,214 units of shares of 97 companies worth Rs 152.58 million were traded through 1174 transactions.

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