Nepal Stock Exchange last week surged by 48.29 points to close at 1,232.31points, after investors rushed to purchase stocks with the expectation that listed companies could provide more dividends after they posted higher profits.

With the Nepali New Year falling on Sunday, the market was open for only four days.

The average daily turnover increased to Rs655.04 million from Rs598.58 million along with a significant increase in the market index.

The secondary market opened at 1,184.02 points on Monday, the first day of the Nepali New Year, and picked up 4.7 points to close at 1,188.72 points. On Tuesday, the market index spiked 23.33 points to cross 1,200 points. It was followed by a marginal growth of 4.99 points on Wednesday before escalating again by 15.27 points on Thursday.

In overall trading, the market increased by 4.07 percent during the review period.

Stock analysts said the market escalated as investors gained confidence with the beginning of the Nepali New Year. “Most of the investors have the expectation that listed companies will announce dividend out of their profits with the arriving end of the current fiscal year,” said a stockbroker under condition of maintaining anonymity.

The sensitive index that measures the performance of blue chips companies also inclined 11.93 points to close at 265.57 points after majority of trading groups including commercial bank, which holds major shares in market capitalisation, posted notable gain in their indices.  

With an increase in share prices, investors gained Rs65.70 billion from the transaction, as the market capitalisation increased to Rs1,528.20 billion from Rs1,462.50 billion.

Of the 11 trading groups, eight gained points during the review period. Life-insurance was the biggest gainer, picking up 82.12 points to close at 6,073.65 points. It was followed by microfinance that added 76.22 points in its index.

Similarly, commercial banks gained 69.57 points, hotels gained 54.48 points, non-life insurance gained 33.17 points and development bank added up 28.96 points. The indices of manufacturing and finance companies increased 14.95 points and 6.45 points respectively.  

Of the two losers, hydropower index dropped 6.01 points and ‘others’ index fell 1.44 points. The market index of trading was stable at 244.9 points throughout the review period.

Regarding the individual companies’ trading amount, NMB Bank with holding transaction of its stocks worth Rs194.09 million topped the group. It was followed by Kumari Bank, Prabhu Bank, NIC Asia Bank and Nepal Bank Limited.

Last week, stocks worth Rs2.62 billion were traded which was 12.37 percent less compared to the transaction amount in the previous week. The total number of traded shares also fell to 8,642,026 units from 10,491,374 units. NEPSE listed 19,824,020 units ordinary shares of two companies over the week.

Right Shares/Bonus Shares

Company    Type    Units

Synergy Finance Company     Right    380,938

Nepal Investment Bank    Bonus    19,443,082