Nepal Stock Exchange (Nepse) last week gained 25.72 points to close at 1,479.86 points, as investors rushed to purchase shares with the end of the first half nearing.
Nepal Stock Exchange (Nepse) last week gained 25.72 points to close at 1,479.86 points, as investors rushed to purchase shares with the end of the first half nearing.
The secondary market that opened at 1,454.14 points on Sunday lost 6.69 points to close the day at 1,447.45 points. On Monday and Tuesday, the market gained 11.52 points and 17.93 points, respectively, before shedding 0.39 points on Wednesday. The index rose 3.35 points on Thursday, to close the week 1.76 percent higher.
Parmeshwor Bhakta Malla, managing director of Malla & Malla Stock Broking Company, termed the rise in the index following a long slump as “correction”. “As the investors have now paid bank interests, they are eager to invest,” said Malla. “Investors are also expecting good financial reports.”
With a 31.36-point rise in the sub-index of commercial banks, the market heavyweights, the sensitive index that measures the performance of Group ‘A’ companies gained 5.84 points to close at 319.96 points. Last week, the total value of shares listed on the exchange surged by Rs31.87 billion, with the market capitalisation rising to Rs1,660.27 billion from Rs1,628.40 billion.
Of the nine trading groups, five posted gains. The leader was the insurance sub-index which gained 264.5 points to close at 6,934.8 points. Malla attributed the growth in the insurance sub-index to investors’ attraction towards Nepal Life Insurance shares after it issued further public offering last week.
The group representing commercial banks stood second, while the hydropower sub-group gained 24.02 points, finance companies 18.32 points and manufacturing 0.34 points.
Development banks saw their sub-index fall 11.18 points to 1518.93 points, while hotels (down 8.41 points) and others (down 3.76 points) followed. The trading group was non-mover at 205.03 points.
Last week, Nepal Life Insurance posted the biggest turnover of Rs134.87 million. It was followed by Bank of Kathmandu Lumbini with a transaction of Rs124.18 million. NB Insurance, Everest Bank and Kumari Bank rounded out the top five. With 2,548,000 units of its shares changing hands, Nabil Balance Fund 1 topped in terms of the number of shares traded.
Last week, shares of 148 listed companies were traded. Despite a surge in the Nepse index, the transaction amount plunged 19.74 percent to Rs1.73 billion. The number of shares traded, on the other hand, rose to 10,033,780 from 4,549,150 units.
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