Nepse closes at all-time high of 1,300 pointsThe Nepse set a new record on Thursday closing above 1,300 points. Shares listed on the Nepal Stock Exchange rose due to the start of full-fledged paperless transactions and excess liquidity with banks, traders said.
The Nepse set a new record on Thursday closing above 1,300 points. Shares listed on the Nepal Stock Exchange rose due to the start of full-fledged paperless transactions and excess liquidity with banks, traders said.
Priya Raj Regmi, president of the Stockbrokers’ Association of Nepal, said the use of technology, in particular, had encouraged investors to put money in stocks. “Besides, a fall in interest rates on loans against shares due to excess liquidity with banks has also helped propel the index,” he said.
On the last trading day of the week, the secondary market gained 4.98 points to close at 1,300.76 points. This is an all-time high for the Nepse.
The market has been on an upward trend since Nepse introduced the demat system on January 15.
Regmi said the regulator’s initiative to regulate the
market had also pushed up
“The Securities Board of Nepal has initiated a move to devise policies to regulate merchant banking besides limiting stock broker commission and other charges,” said Regmi.
He added that the market had been rising due to an increase in the profits of banks besides concerns about raising the paid-up capital of insurance companies.
Along with the rise in the Nepse, the volume of transactions has also swelled. On Thursday, the turnover amounted to Rs622.30 million.
The indices of almost all the trading groups except banking soared.
Insurance companies witnessed the biggest rise of 52.67 points to close at 5,588.71 points. It was followed by hotels, finance companies, development banks and hydropower companies.
Likewise, Nepal Grameen Bikas Bank witnessed the biggest turnover of Rs59.2 million, followed by Rural Microfinance Development Centre and Sanima Bank.
Regmi said he expected the Nepse to rise further. “If there is a positive political development and the reconstruction work starts, the secondary market could reach new heights in the future.”