Insurance companies lead as stocks rallyInsurance companies led the stocks rally on Monday, jumping 388.02 points while the Nepal Stock Exchange (Nepse) rose 16.39 points to close at 1200.15 points.
Insurance companies led the stocks rally on Monday, jumping 388.02 points while the Nepal Stock Exchange (Nepse) rose 16.39 points to close at 1200.15 points. This is the second time in as many weeks that the Nepse has topped the 1,200-point mark.
Narendra Raj Sijapati, president of the Nepal Stockbrokers Association, attributed the rise in the insurance group’s index to the Insurance Board’s plan to raise the paid-up capital of insurance companies.
Nepali Life Insurance Company was the highest gainer among insurance companies with a rise of 349 points. Similarly, Life Insurance Company Nepal and National Life Insurance rose 294 points and 229 points respectively.
Besides insurance, the sub-indices of four other groups, namely development banks, hotels, commercial banks and finance companies, also increased.
The secondary market posted a turnover of Rs613.37 million on Monday. Similarly, market capitalisation reached Rs1,236.38 billion.
Insurance is one of the sectors which has witnessed phenomenal growth in share prices in recent days. The Insurance Board has planned to order insurance companies to jack up their paid-up capital with an amendment to Insurance Act 1992. A draft of the amended law is currently at the Finance Ministry.