Nepse surges by over 110 pointsNepal Stock Exchange (Nepse) index gained a whooping 110.76 points to close at 1,388.31 points last week as investors remained hopeful that the market would take an upward trend due to the improving liquidity position of banks.
Published at : April 22, 2018
Updated at : April 22, 2018 13:31
Nepal Stock Exchange (Nepse) index gained a whooping 110.76 points to close at 1,388.31 points last week as investors remained hopeful that the market would take an upward trend due to the improving liquidity position of banks.
Along with the Nepse index, the average daily transaction also rose to Rs817.74 million during the review period, which was hovering at an average of Rs300-400 million for over a year.
Last week, the market that opened at 1,277.55 points on Sunday increased marginally by 2.6 points and closed at 1,280.15 points.
On Monday, the market gained 17.42 points to close at 1,297.57 points.
Nepse posted double digit growth of 33.61, 31.83 and 25.3 points on Tuesday, Wednesday and Thursday respectively. On average, the index increased 8.66 percent over the week.
Stockbrokers attributed the rise in Nepse to the banks’ indication that the crisis of loanable funds with them has eased recently.
“As the central bank has also announced injecting additional funds and the rise in capital expenditure by the government, investors are lured to invest more into the secondary market,” said a stockbroker under condition of anonymity. “Also, increased investment from institutional investors has helped the market onto a bullish trend.”
The sensitive index that measures the performance of Group ‘A’ companies also inclined 21.58 points to close at 294.03 points with majority of the trading groups observing upward trend in their stocks transactions last week.
With a rise in the market index, the average value of the shares listed on the stock market also went up Rs130.15 billion with the market capitalisation reaching to Rs1,627.94 billion from Rs1,497.79 billion over the week.
Except for the sub-group trading, the remaining nine groups witnessed a rise in their indices. Insurance gained the largest of 852.25 points to close at 7,013.33 points. Microfinance’s index went up 223.61 points while hotels’ index added up 219.55 points. It was followed by hydropower of 197.32 points, development banks of 135.53 points and manufacturing of 98.89 points.
Likewise, index of commercial bank was up with 71.63 points, ‘others’ with 63.54 points and finance companies with 37.89 points.
Trading was the only group that witnessed a downfall, losing 3.38 points.
Of the individual companies, Surya Life Insurance Company led in terms of transaction amount. Shares worth Rs124.2 million of the insurance company were traded last week. It was followed by Kumari Bank, United Insurance Company Nepal, Chilime Hydropower Company and Nepal Bank Limited in the segment.
Similarly, Kumari Bank which observed 424,000 units of its shares exchanging hands, led in terms of the number of traded shares.
Last week, the stocks of 181 listed companies were traded. Along with rise in the market index, the transaction amount also increased by 38.46 percent to Rs4.08 billion. According to Nepse, the traded number of shares also increased to 8,859,410 units from 8,198,900 units.
Right Shares/Bonus Shares
Company Type Units
NIC Asia Debenture 2081-82 General 3,000,000
Citizens Mutual Fund 1 General 82,000,000
NIC Asia Growth Fund General 83,520,000