Today, Nepal Stock Exchange (Nepse)’s trading floor saw transactions worth Rs 515.8 million of 114 companies without any bulk transaction. The surge in turnover was coupled with the steep rise of the Nepse index. The continuous bullish rise of share prices pushed the index up to 677.8 points today — up by 16 points that is 2.42 per cent. This is the highest level the index has reached in the last 51 months.
Nepse increased the trading limit for brokers from today which contributed in today’s jump in the turnover. Today, 1.46 million units of shares were traded in 3198 transactions. Yesterday, Nepse recorded a turnover of Rs 363 million.
Brokers have now been allowed to place orders worth 50 times their security deposit at the stock exchange. Earlier, the limit was 20 times the security deposit.
“The increased trading limit is one of the major reasons for today’s surge in turnover,” pointed out president of Share Brokers Association of Nepal Narendra Raj Sijapati. Brokers had demanded increased trading limit citing that the total orders placed at brokers exceed Rs one billion per day. However, they were able to execute only a portion due to the earlier trading limit.
“In addition, investors who were waiting to invest during the elections have also started trading so investment has poured in to the market,” Sijapati pointed out.
The average daily turnover was at around Rs 170 million as of the third month of the current fiscal year. Moreover, there is a tendency among investors to engage in trading during bullish market movements.
Today, hydropower and insurance subgroups registered the highest surge in indices. Arun Valley Hydropower, Chilime Hydropower and Butwal Power Company registered gains of Rs 19, Rs 23 and Rs 46, respectively. Likewise, among the insurance companies NLG Insurance, Nepal Life Insurance, Shikhar Insurance and Alliance Insurance registered gains of Rs 69, Rs 40, Rs 70 and Rs 43, respectively, among others.
Nepal Telecom’s share price also soared by Rs 18. Nabil Bank’s promoter shares registered a gain of Rs 11 and its ordinary shares went up by Rs 84. Likewise, shares of microfinance development banks also registered a remarkable ascent.
Among the total trading of 114 companies, share prices of only nine companies declined. Soaltee Hotel, that lost Rs eight per unit, was the biggest loser of the day. The market capitalisation stood at Rs 687.7 billion.
- The Himalayan Times
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