Nepal Stock Exchange (NEPSE) last week surged by 20.71 points to close at 1,165.20 points, after the frontline regulator announced plans to revise the circuit break provision and Securities Board of Nepal stepping up to reduce the transaction settlement period.

With an increased transaction volume, the average daily turnover also stood at Rs417.92 daily, up from Rs293.71 million.

The secondary market that opened at 1,144.49 points on Sunday dropped marginally by 0.94 points to close at 1,143,55 points. In the next three trading days, the market however inclined successively before dipping by 0.64 points on Thursday—the last trading day.  The market gained 1.8 percent during the review period.

Stock analysts attributed the surge in NEPSE to the approaching end of the third quarter of the fiscal year along with the regulators’ moves to improve the inner workings of the country’s only stock exchange market. “Most of the investors generally clear their interests due on bank loan by this time and are encouraged to purchase stocks, expecting an ease in liquidity with the banks as the government offices speed up public spending with the arriving fiscal year end,” said a stockbroker under condition of maintaining anonymity.

The sensitive index that measures the performance of blue chips companies also inclined 5.09 points to close at 248.57 points after majority of trading groups including the sub-index of commercial bank, which holds a major share in market capitalisation, posted notable gain in their indices.  

With an increase in share prices, investors gained Rs25.30 billion from the transaction, as the market capitalisation increased to Rs1,424.08 billion from Rs1,398.78 billion.

Of the 11 trading groups, six gained landed in the green during the review period. Manufacturing gained the largest of 37.71 points to close at 2,052.36 points. It was followed by commercial bank which added 35.52 points to its index.

Likewise, hotels gained 11.67 points, development banks gained 10.12 points, ‘others‘ gained 1.32 points while finance companies’ index went up by by 0.66 points.

Of the four losers, life insurance shed 35.78 points and closed at 5,885.19 points. Non-life insurance dropped 27.28 points, microfinance dropped 12.29 points and hydropower index went down by 6.11 points.

The market index of trading was stable at 244.9 points throughout the review period.

Regarding the individual companies’ trading amount, NIC Asia Bank recorded transaction of its stocks worth Rs160.44 million to claim pole position. Nepal Credit and Commerce Bank, Prabhu Bank, NMB Bank and Nepal Bank Limited fill out the top five companies during the review period.  

Last week, stocks worth Rs2.08 billion were transacted, which was 42.46 percent more compared to the transaction amount in the previous week. The total number of traded shares went up to 7,908,145 units from 6,003,035 units.

NEPSE listed bonus shares of Shangrila Development Bank, Sindhu Bikas Bank and Samata Microfinance Bittiya Sanstha and right shares of Lumbini Bikas Bank and IME General Insurance over the weekdays.