The stock market index swished past 520 points today, as investors with loads of cash went on a buying spree.
“The beginning of the fiscal year, which has flushed investors with margin financing, has contributed to higher transaction levels and surge in share prices,” pointed out share analyst Rabindra Bhattarai.
Banks and financial institutions were limiting credit flow in the last few months of the fiscal year 2012-13 due to Nepal Rastra Bank’s rule that makes it mandatory for banking institutions to set aside one per cent of the total loan for loan loss provisioning.
Since the provisions have to be made upon issuance of credit, banking institutions end up allocating more amount for loan loss provisioning, which affects their profit level. Announcement of full budget on time has also boosted investor confidence. However, the first day of this fiscal year saw share index slump but next day it retreated back a little. As of the third day, index rose to 521.53 points after over three months.
The index had plunged below 500 points on May 2 even reaching 481 points on May 6. Today’s trading saw shares of Chilime Hydropower, NIC Asia Bank, Everest Bank, Nepal Life Insurance Company shining through. They earned more than Rs 50 per unit. Chilime Hydropower that earned Rs 50 pulled the hydropower subgroup up by 29.9 points.
Likewise banking recorded 10.91-point hike as all of the major listed banks’ share prices rose. Nepal Telecom gained Rs 11, which gave a 12.92-point boost to ‘others’ subgroup.
The biggest gainer was NIC Asia Bank and biggest loser was National Hydropower Company. Today 266,976 unit shares of 24 firms were traded in 1,044 transactions worth Rs 112.9 million. Market capitalisation was recorded at Rs 518.4 billion.
src : THT
“The beginning of the fiscal year, which has flushed investors with margin financing, has contributed to higher transaction levels and surge in share prices,” pointed out share analyst Rabindra Bhattarai.
Banks and financial institutions were limiting credit flow in the last few months of the fiscal year 2012-13 due to Nepal Rastra Bank’s rule that makes it mandatory for banking institutions to set aside one per cent of the total loan for loan loss provisioning.
Since the provisions have to be made upon issuance of credit, banking institutions end up allocating more amount for loan loss provisioning, which affects their profit level. Announcement of full budget on time has also boosted investor confidence. However, the first day of this fiscal year saw share index slump but next day it retreated back a little. As of the third day, index rose to 521.53 points after over three months.
The index had plunged below 500 points on May 2 even reaching 481 points on May 6. Today’s trading saw shares of Chilime Hydropower, NIC Asia Bank, Everest Bank, Nepal Life Insurance Company shining through. They earned more than Rs 50 per unit. Chilime Hydropower that earned Rs 50 pulled the hydropower subgroup up by 29.9 points.
Likewise banking recorded 10.91-point hike as all of the major listed banks’ share prices rose. Nepal Telecom gained Rs 11, which gave a 12.92-point boost to ‘others’ subgroup.
The biggest gainer was NIC Asia Bank and biggest loser was National Hydropower Company. Today 266,976 unit shares of 24 firms were traded in 1,044 transactions worth Rs 112.9 million. Market capitalisation was recorded at Rs 518.4 billion.
src : THT
