Stocks rebound on poll scheduleStocks rebounded on Wednesday following the publication of the schedule for the second phase of local elections slated for June 28.
Stocks rebounded on Wednesday following the publication of the schedule for the second phase of local elections slated for June 28.
The Nepal Stock Exchange (Nepse) index recorded a double-digit growth of 13.68 points to close at 1,608.11 points.
Share prices tumbled on Tuesday as the government’s annual financial plan issued on Monday was a disappointment for traders. The Nepse plunged 21.15 points to close at a two-month low. Stock market analysts attributed the new-found buoyant mood in the secondary market to the publication of the election schedule and the announcement by Tarai-based political parties that they would withdraw planned protests to disrupt local polls.
Narendra Raj Sijapati, past president of the Stock Brokers’ Association of Nepal, cited political reasons for the market correction. “Investors bought shares that were selling for less than Rs1,000 apiece,” he said.
Green Development Bank, whose shares sold for Rs682 per unit, led the top 10 gainers. Such companies dominated the market in terms of transaction volume too.
Among the top 10 companies in the category, six companies have share prices below Rs800 per unit.
The market opened at 1,594.43 points and started falling to hit a low of 1,582.98 points after one and a half hours of trading.
The Nepse soon rebounded and reached a high of 1,612.68 points before closing at 1,608.11 points.
All the trading groups except manufacturing gained on the day. Insurance gained 121.41 points to close at 8,625.36 points. Development banks, hotels and hydropower were among the main gainers.
Despite a rise in the Nepse, the turnover amount fell to Rs679.35 million from Rs763.8 million recorded on the previous day.
Nepse employees flay planned second bourse
Employees of the Nepal Stock Exchange (Nepse) are upset at the plan of the Securities Board of Nepal (Sebon) to set up a second stock exchange.
Nepse employees have criticized the move to establish another bourse and handed over memorandums to the Ministry of Finance, Nepal Rastra Bank and Sebon.
“When there is a need to step up reform of the existing share trading system, the move to open another stock exchange has put the government’s investment of more than Rs18 billion in the sector at risk,” the statement said. Nepse officials have urged the government to review the economy’s need to open another stock exchange.
According to them, Nepse has already started the process of upgrading technology and conducting structural reform to allow stock trading from all over the country.
“Considering the limited market size, it will be a misfortune if a new stock exchange is opened instead of improving the existing one,” said a Nepse official.