Nepal Stock Exchange (Nepse) benchmark index jumped by 25 points this
week to close at seven-year high of 1,088.42 points on Thursday.
The benchmark index had last reached this level on September 2, 2008 when the market closed at 1,102 points. Recent directive of Nepal Rastra Bank (NRB), which requires bank and financial institutions (BFIs) to raise their minimum paid-up capital by four-fold, has created optimism in the market, with the index climbing up to seven-year high. The possibility of promulgation of new constitution within the given timeframe and liquidity surplus in the banking system is giving momentum to the benchmark index, according to stock brokers.
"Investors are hopeful that BFIs will announce bonus shares when they announce benefits in this season," Narendra Sijapati, former president of Stock Brokers Association of Nepal (SBAN), said. "It is almost certain that the constitution will be drafted soon. Investors are in a buoyant mood. These positive developments have propelled Nepse index to a seven-year high."
Investors and stock brokers say the market is on course to shatter the all-time high record of 1,175.38 points.
Manufacturing and Processing was the biggest gainer of the week as its sub-index climbed up by 91.63 points to close at 1,802.76 points. Insurance and Banking groups followed suit, gaining 72.79 points and 36.96 points, respectively, to settle at 4,609.67 points and 1,021.34 points. Similarly, Hotels sub-index gained 10.52 points to close at 1,875.79 points. The sub-indices of Development Bank and 'Others' groups also inched up 1.46 points and 1.17 points, respectively, to settle at 856.83 points and 729.57 points.
Hydropower and Finance groups, however, ended on the red zone this week with their sub-indices going down by 16.83 points and 2.9 points, respectively, to close at 2,102.55 points and 539.28 points. Trading group remained unchanged at 212.92 points this week.
A total of 5.56 million units of shares of 168 companies worth Rs 3.18 billion were traded in the market this week through 21,487 transactions. - Republica
The benchmark index had last reached this level on September 2, 2008 when the market closed at 1,102 points. Recent directive of Nepal Rastra Bank (NRB), which requires bank and financial institutions (BFIs) to raise their minimum paid-up capital by four-fold, has created optimism in the market, with the index climbing up to seven-year high. The possibility of promulgation of new constitution within the given timeframe and liquidity surplus in the banking system is giving momentum to the benchmark index, according to stock brokers.
"Investors are hopeful that BFIs will announce bonus shares when they announce benefits in this season," Narendra Sijapati, former president of Stock Brokers Association of Nepal (SBAN), said. "It is almost certain that the constitution will be drafted soon. Investors are in a buoyant mood. These positive developments have propelled Nepse index to a seven-year high."
Investors and stock brokers say the market is on course to shatter the all-time high record of 1,175.38 points.
Manufacturing and Processing was the biggest gainer of the week as its sub-index climbed up by 91.63 points to close at 1,802.76 points. Insurance and Banking groups followed suit, gaining 72.79 points and 36.96 points, respectively, to settle at 4,609.67 points and 1,021.34 points. Similarly, Hotels sub-index gained 10.52 points to close at 1,875.79 points. The sub-indices of Development Bank and 'Others' groups also inched up 1.46 points and 1.17 points, respectively, to settle at 856.83 points and 729.57 points.
Hydropower and Finance groups, however, ended on the red zone this week with their sub-indices going down by 16.83 points and 2.9 points, respectively, to close at 2,102.55 points and 539.28 points. Trading group remained unchanged at 212.92 points this week.
A total of 5.56 million units of shares of 168 companies worth Rs 3.18 billion were traded in the market this week through 21,487 transactions. - Republica
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