Nepse up on demat, consensus hopesThe Nepal Stock Exchange (Nepse) last week inched up 0.32 points to close at 1,212.32 points.
The Nepal Stock Exchange (Nepse) last week inched up 0.32 points to close at 1,212.32 points.
The market reached an all time high of 1,212 points on Sunday, the first trading day after the regulator made demat transaction mandatory for all listed companies.
The benchmark index gained 2.31 points on Monday before losing points for rest of the week. The week’s biggest fall of 1.25 points was observed on Thursday.
Stockbrokers attributed the slight growth in the market to fall in bank interest rates, implementation of paperless share transaction and positive political developments.
Ashok Kumar Jha, managing director of Aashutosh Brokerage and Securities, said expectations of a consensus among parties to end the current political impasse and implementation of demat helped the market to grow. “The implementation of electronic shares eased the transaction process, encouraging investors,” he said.
Bharat Ranabhat, managing director of Kohinoor Investment and
Securities, said the fall in bank interest rates and demat transaction boosted investor confidence. “As bank interest rates have fallen sharply, investors are considering stock market as the best investment alternative,” Ranabhat said.
Of the nine trading groups, three posted giants. Development Banks (up 20.39 points) was the biggest gainer, followed by Others and Commercial Banks.
The group representing insurance companies (down 65.96 points) led the lowers’ side including Manufacturing, Hydropower, Finance Companies and Hotels. The Trading group was stable at 201.38 points.
Stockbrokers expressed hope the market would grow in the future as various factors influencing the secondary market were positive.
The sensitive index that measures the performance of ‘A’ class companies also went up by 0.39 points to close at 260.75 points.
The overall market transaction increased 2.23 percent to Rs2.50 billion, but the number of traded shares declined to 3,758,610 from 5,112,120 units. Sanima Bank posted the
highest individual turnover of Rs202.9 million topped. Nepal Bank led in
terms of the number of shares traded (382,000 units).