The Nepal Stock Exchange (Nepse) index gained 12.59 points this week as
investors´ confidence improved in anticipation of cheaper loans after
the recently introduced monetary policy reduced spread rate for banks.
In the monetary policy for fiscal year 2013/14, Nepal Rastra Bank (NRB) has reduced spread rate - the difference in interest rates on loan and deposit - to 5 percent from 7 percent.
The benchmark index reached 546.89 points on Thursday - the last trading day of the week, up from 534.3 points recorded on Sunday. Anjan Raj Poudyal, former president of Stock Brokers´ Association of Nepal, said investors were encouraged to put more money in the secondary market after spread rate was brought down to five percent.
Share analysts also said satisfactory financial reports of some listed companies for the fourth quarter of the last fiscal year also encouraged investors. They also attributed improvement in capital market to the availability of more fund with the completion of share allotment process by Mega Bank.
According to Nepse, a total of 2.98 million units of shares of 121 companies worth Rs 871.8 million changed hands through 9,521 transactions this week. The transaction amount is 120 percent higher than the total transaction amount recorded in the previous week.
The Hydropower group was the biggest winner of the week, as its sub-index increased by 61.79 points to 1,243.06 points. Similarly, Others group posted gains of 19.97 points to 655.59 points, while Insurance group saw its sub-index go up by 17.59 points to 1,119.75 points.
Likewise, the sub-indices of Commercial Banks and Finance groups went up by 12.47 points and 3.98 points, respectively, to 542.84 points and 266.54 points. The Development Bank sub-index also inched up by 1.68 points to 263.65.
However, the sub-index of hotel group dropped by 6.01 points to 652.05.
Src : Republica
In the monetary policy for fiscal year 2013/14, Nepal Rastra Bank (NRB) has reduced spread rate - the difference in interest rates on loan and deposit - to 5 percent from 7 percent.
The benchmark index reached 546.89 points on Thursday - the last trading day of the week, up from 534.3 points recorded on Sunday. Anjan Raj Poudyal, former president of Stock Brokers´ Association of Nepal, said investors were encouraged to put more money in the secondary market after spread rate was brought down to five percent.
Share analysts also said satisfactory financial reports of some listed companies for the fourth quarter of the last fiscal year also encouraged investors. They also attributed improvement in capital market to the availability of more fund with the completion of share allotment process by Mega Bank.
According to Nepse, a total of 2.98 million units of shares of 121 companies worth Rs 871.8 million changed hands through 9,521 transactions this week. The transaction amount is 120 percent higher than the total transaction amount recorded in the previous week.
The Hydropower group was the biggest winner of the week, as its sub-index increased by 61.79 points to 1,243.06 points. Similarly, Others group posted gains of 19.97 points to 655.59 points, while Insurance group saw its sub-index go up by 17.59 points to 1,119.75 points.
Likewise, the sub-indices of Commercial Banks and Finance groups went up by 12.47 points and 3.98 points, respectively, to 542.84 points and 266.54 points. The Development Bank sub-index also inched up by 1.68 points to 263.65.
However, the sub-index of hotel group dropped by 6.01 points to 652.05.
Src : Republica
