Stock market up 7.86 points; hotels lead

Nepal Stock Exchange (Nepse) last week rose 7.86 points to close at 548.40 points on Thursday.
With the listed companies, particularly commercial banks, announcing huge profits in the last fiscal year, the stock market has witnessed increased investor interest lately.
The market, which opened at 540.54 points on Sunday, maintained its upward momentum throughout the week.

Nepse at 543.72, adding 3.25 points

Adding 3.25 points more to its tally, the secondary market continued to flourish today also.

Though the market followed the south direction in the initial period, later made a spectacular bullish run to end the day in high note. The market index today closed at 543.72 levels.

Rastriya Beema Sansthan to be split into life, non-life insurance

Rastriya Beema Sansthan (RBS) is preparing to separate its business es into life and non-life after resisting the Insurance Board’s (IB) attempt to bring it under the Insurance Act for 11 years.

The amended Insurance Act requires separation of the two kinds of insurance. However, RBS’ insistence that it is governed by the RBS Act 1968 and its failure to have its books audited for several years complicated the process of separating its two business es. On the private sector front, National Life and General Insurance has been split into two entities—National Life Insurance and NLG Insurance.

Investors confidence pushes Nepse up 7.55 points

Along with northbound share prices, transaction volume in the stock exchange surged by 84 per cent as the investors are betting for the better days to come, this week –July 21 to 25.

The benchmark index rose by 7.55 points as the more investors are coming in with expectation of better return. The transaction volume that stood at Rs 393.5 million last week surged to Rs 724.6 as of this week.

Insurance companies with low paid up to seek merger

Insurance Board has exerted pressure on insurance companies that have failed to increase their paid up capital to the required level to seek merger.The board had issued a directive three years ago asking life insurance companies to maintain a paid up capital of Rs 50 crore and general insurance companies to Rs 25 crore by the end of FY 2069/70.

Stock Investors regain faith due to timely budget

The first week (July 14 to 18) of the new fiscal year saw the stock market pushing for new heights, boosting investor confidence.

The full budget which was announced on schedule last week has signalled better economic conditions which helped investors regain faith in the share market. Moreover, financial institutions started providing margin financing for share purchases since the beginning of the fiscal year. In the last two months of the previous year, financial institutions had slowed down in issuing short-term loans against shares due to the need to provision one per cent of the loan in the year-end balance sheet. But with the new fiscal year, they have resumed margin financing.

Nepal Stock Index Nepse index up 12.9 points.

Nepal Stock Index (Nepse) increased by 12.9 points this week led by gains posted by insurance companies and commercial banks.
The benchmark index, which opened at 493.63 on Sunday, closed at 506.53 on Thursday - the last trading day of the week.

Total transaction amount increased by 17.90 percent to Rs 446.6 million. Share transactions of commercial banks accounted for 61.21 percent of total transaction amount this week. Banking stocks worth Rs 273.3 changed hands during the week.