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Nepse’s Rally Continues

  3 min 14 sec to read

 
--By TC Correspondent
 
Nepal Stock Exchange Limited (Nepse) Index continues to hold to the gains of last week on Sunday. The benchmark index of the country’s capital market, which opened at 822.67 points on the first day of its weekly trading, moved 9.19 points up. On Sunday, Nepse rallied to 838 points before settling at 831.86 points. 
 
Analysts say that the rise in Nepse was attributed to the news about formation of a new cabinet. According to news circulating around the Nepali media sphere on Sunday,  a new cabinet will form by this week after a political settlement between Nepali Congress and CPN (UML). Though unconfirmed, the settlement is said to be regarding the portfolio division of home ministry among others. 
 
Sunday’s turnover was recorded at Rs 423.13 million. Similarly, a total of 976,585 units of shares of 125 companies were traded in the stock market throughout 2,915 transactions.  
 
Most of the trading sub-indices end the day in green territory with Hydropower achieving the position of biggest gainer (87.12 points) followed by Insurance (46.42 points), Finance (12.54 points), Banking (9.19 points) Development Banks (4.15 points) and Hotels (0.92 points). ‘Others’ sub-index, meanwhile, ended the day in red losing 5.88 points. Sensitive index representing class ‘A’ listed companies in the secondary market also rose 1.84 points to close at 180.48 points.
 
Weekly Indices
 
Nepse Rose 20 Points Last Week
Nepse continued its impetus as the benchmark index went up 19.56 points last week. Opening its weekly trading on the first day (Sunday) at 803.11 points, Nepse settled at a 63-month high of 822.67 points on the last day (Thursday). Following a bull run after the appointment of Nepali Congress (NC) leader Sushil Koirala as the new Prime Minister of the country, Nepse crossed the resistance level of 806 points last week. On Thursday, the index rallied over 825 points before closing at 822.67. On the commencement of weekly trading (Sunday), Nepse index recorded lowest weekly level at 800.32 points. Despite the on going dispute between NC and CPN (UML) over the portfolio division of key ministries -including the Home Ministry-investors reacted positively to the new political development. 
 
Shares worth Rs 1.12 billion totalling 2.85 million units were traded in the stock market through 9,386 transactions. The turnover and number of transactions declined 30.71 per cent and 30.43 per cent respectively.  Meanwhile, unit of shares traded also decreased 45.58 per cent. 
 
Promoter shares of Everest Bank Limited climbed to the top spot in terms of weekly turnover. Similarly, in terms number of share units being transacted for the week, Nabil Balance Fund-1 remained at the number one spot. In terms of market capitalization, Nepal Telecom maintained its top position as earlier weeks. 
 
Most of the trading sub-indices witnessed increase last week. Insurance sub-index was the biggest weekly gainer with 325.53 points. Likewise, Hydropower was the second biggest gainer (88.68 points), followed by Finance (31 points), Development Banks (15 points) and Banking (8.23 points). Hotels was the biggest loser for the week as the trading sub-index saw a decline of 29.99 points which was followed by Manufacturing and Processing (9.6 points). ‘Others’ sub-index, meanwhile, remained same as previous week. For the week, the Sensitive Index representing the share trading of blue chip stocks belonging toclass ‘A’ listed companies went up 3.51 points.  
 
Last week, shares of 148 companies were transacted in the domestic stock market. 100 companies observed gain in their share prices while, 28 logged decline. Share prices of 20 companies remained unchanged over the period.

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