Nepse ends week 8.19 pts higherWeekly transaction at Nepal Stock Exchange (Nepse) fell 21.4 percent as the market headed towards stability after massive fluctuations in previous weeks.
Weekly transaction at Nepal Stock Exchange (Nepse) fell 21.4 percent as the market headed towards stability after massive fluctuations in previous weeks.
Last week, the market recorded a turnover of Rs3.45 billion.
The figure had hit as high has Rs9.54 billion four weeks ago when the benchmark index jumped to its all-time high of 1,877.93 points. However, a planned probe by the Securities Board of Nepal (Sebon) into a possible inflow of illicit money checked the growth and the index lost points in the following week. The market again started to recover after Sebon scrapped the probe committee.
The Nepse index last week rose 8.19 points to close at 1,730.62 points. The market lost points in the first three trading days of the week, but recovered on the final day.
According to stock analyst Rabindra Bhattarai, reports about a few insurance companies planning to issue right’s share boosted demand for insurance stocks on the final trading day last week.
Himalayan General Insurance Limited’s board has proposed 1:2.2 right’s issue subject to endorsement by its special general meeting next month.
Investors’ hopes for a hike in paid-up capital requirements for insurance companies have pushed stock prices of insurance companies higher. However, the Insurance Board has so far failed to rein in insurers like the Nepal Rastra Bank did with banks when it comes to increasing the paid-up capital requirements.
According to Bhattarai, the investors were attracted to a few joint-venture banks last week hoping that they would raise their capital. “Reports about Standard Chartered Bank hiking its capital resulted in heaving selling of its stocks,” said Bhattarai.
Last week, the insurance sub-index gained 295.63 points. However, commercial banks, development banks, hotel sectors observed a growth, finance companies, hydropower and manufacturing sector observed posted losses. The trading group remained stable.
Last week, a total of 4,781,900 shares were traded in the secondary market, down from the previous week’s 8,323,860 units.