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Nepse Recovers Due To Buying Pressure

  1 min 55 sec to read

 
--By TC Correspondent
 
In an apparent sign of recovery of last two weeks loss, Nepal stock Exchange Limited (Nepse) index had increased 4.32 points during the week from February 02 to 06. The benchmark index of country's capital market which was at 781.46 points on the last Thursday settled at 785.78 points on the last trading day (Thursday) of this week. 
 
Analysts say it is a natural recovery as the index was in decreasing trend during the last two weeks. They claim that though most listed companies have declared and distributed cash dividends and bonus shares, many investors are still shying away to invest to their full capacity even at current lower prices. "Once they got the preferred stocks at the lower price, it is obvious to increase the demand for them which in turn boost up the index”, said an analyst. 
 
The recovery of stock market seems to have contributed by double-digit growth of hydropower, insurance and development bank sub-indices.  
 
For the week, shares worth Rs 121.12 billion totalling 3.34 million units were traded in the stock market through 13148 transactions. Compared to the previous week, the turnover, number of transactions and unit of shares traded increased this week. This indicates that the selling pressure is reducing and the buying pressure is building up. Last week, Nepse index logged highest level of 785.78 points and lowest level of 769.51 points. 
 
Hydropower sub-index gained its position as the biggest gainer with 82.3 points for the week. Similarly, Insurance was the second in the line, which rose 59.53 points followed by Development Bank (16.62 points) and Finance (8.04 points). Similarly, trading sub-index increased by 5.92 points for the week while Manufacturing and Processing's sub-index remained unchanged throughout the week. The Hotels sub-index continued its losing streak as it was the biggest weekly loser with 7.01 points followed by Banking (1.9 points) and 'Others' (1.18 points). Meanwhile, the Sensitive Index representing the share trading of blue chip stocks belonging to class 'A' listed companies increased 0.36 points during the week.  
 

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