Bull run: Nepse gains 200pts over past monthThe Nepal Stock Exchange (Nepse) gained 200 points in the past month as its bull run continued. The secondary market has been posting new records almost every day.
The Nepal Stock Exchange (Nepse) gained 200 points in the past month as its bull run continued. The secondary market has been posting new records almost every day.
The market on Tuesday jumped 11.35 points to close at 1,724.19 points. The index reached 1,525.09 points on June 26.
Analysts attributed the uptrend in the index in recent days to growing demand for stocks of commercial banks, micro finance and insurance companies in particular.
According to stockbrokers, a capital increment plan along with good financial health of the institutions as shown in their quarterly reports also pushed up their indices.
On Tuesday, a rise in the indices of almost all the sub-groups sent the Nepse soaring. Insurance gained 37.75 points and posted the sharpest rise followed by hydropower, hotels, manufacturing and commercial banks.
Anjan Raj Poudel, managing director of Thrive Brokerage House, said investors had started diverting their investment portfolio to banking from micro finance and insurance companies. “As a result, the index of commercial banks, in particular, has leapt in the last few days,” he said.
The banking and insurance groups led in terms of the value of share transactions. NMB Bank posted the highest turnover of Rs89.27 million followed by Lumbini General Insurance, Nepal Bangladesh Bank, Global IME Bank and SBI Bank.
Promoter shares of Rastriya Beema Company rallied for the second consecutive day pushing up its index by 1,151 points. Kalika Microcredit Development Bank witnessed the biggest fall of 155 points.
The value of share transactions totalled Rs1.84 billion with 4,941,830 shares changing hands. Market capitalisation, or the market value of outstanding shares, totalled Rs1,859.16 billion.