NEPSE witnesses its best week since late AprilThe market turnover more than doubled on Thursday compared to a week ago.
The Nepal Stock Exchange (NEPSE) index closed in the positive territory for a second straight week with turnover more than doubling over the past week as bargain-hunters bought into some of the attractively-priced banking and hydropower stocks. The buying momentum resulted in the market witnessing its best week since late April, brokers said.
The market index closed on Thursday at 1,172.64, up from 1,131.92 a week ago. The total turnover on Thursday was worth Rs764,025,213 up from Rs358,839,860 the previous Thursday. The total traded shares stood at 2,102,061 up from 1,095,188 the same day, a week earlier. There were 10,146 transactions in all and as many as 168 scrips were traded. At the end of trading last week, the total market capitalisation stood at Rs1,489,583.02 million.
“The investors last week were seen buying value stocks which are good fundamentally, but had probably plunged to their lowest levels this year, broadly in line with the overall negative market sentiments. The bargain-hunting by investors led the market turnover to more than double,” a broker said.
NMB Bank and Nepal Bank shares were the star performers last week. While NMB saw shares of more than Rs139 million being traded, Nepal Bank’s total transactions amounted to 92 million.
Market participants attribute the higher trading in NMB and Nepal Bank stocks to both companies not having yet closed their books, meaning that those who invest in these stocks will be entitled to the rich dividends being offered by the two companies. Also, a major catalyst driving the current market sentiment is the biggest merger in Nepal’s banking sector between Global IME and Janata Bank, which recently got formalised.
Despite positive sentiments returning to the market, brokers say liquidity remains the top concern for all the participants and it’s the biggest factor behind the market’s under-performance.