NEPSE BREACH 1000 LEVEL AFTER HIATUS OF SIX YEARS

Sharesansar, 8th July:

Making a rally for consecutive eleventh trading days, the only secondary market of Nepal came to breach the 1000-point mark after the hiatus of six years. Last time, the benchmark index breached the 1,000-point mark was on Sept 18, 2008.

Attributed by the strong buying pressure, the market index surged by 19.48 points today, which is the second highest incline in a single day post second Constituent Assembly, to close at 1,014.67 level.

 Following the second Constituent Assembly election and formation of pro-market government, the market index has been on Bull Run. Post formation of Congress led government, the Nepse index has come to surge by nearly 300 points within time period of seven months.

If experts view is to go by, the Nepse index could surpass its all-time high of 1,175 points by the start of the new fiscal year. Nepse had hit its peak on August 31, 2008 before plunging to its lowest of 292.31 points on June 15, 2011.

However, coming to today’s trade, the banking scrips mainly played the anchoring role.

“Today’s drive in the market was mainly formulated by the banking scrips,” says one of the brokers. “The news of Agriculture Development Bank Limited to post net profit of Rs 3 arba in the upcoming quarter not only led to circuit level trading of the company’s share but also attributed in pulling up the price of remaining banking shares.”

Making a second highest turnover of Rs 47.09 million following Chilime Hydro power Co.’s (CHCL) turnover of Rs 63.27 million, the ADBL scrip today propelled by Rs 57 or 9.98 percent to close at Rs 628, which is the second best performer in today’s session next  to ICFC Finance Limited (ICFC) gain of Rs 30 or 10 percent.

The positive sentiment of market toward ADBL proved to be a boosting factor in remaining banking scrips as the strong demand was witnessed in later hours in remaining 36 banking scrips. By the end of the day, all the banking scrips landed on green which propelled the banking sector by 25.04 points.

The gain in banking scrips also circulated positive impact on Development and Finance sectors which helped the sub-indices to carry on with its prior day’s rally. Development added 19.71 points and Finance increased by 12.11 points.

Similarly, Hotels, Hydro, Manufacturing and Others also received positive reaction as sub-groups incremented by 30.69 points, 22.87 points, 3.49 points and 5.87 points respectively.

While, Insurance sector dropped by 4.83 points today as most of the investors and traders opted for profit booking post prior day’s hefty incline.

All in all, the scrips of 154 companies were traded, out of which 122 scrips gained, 12 remained intact and 20 scrips lost.

The market turnover today stood at Rs 828,566,513, with total number of shares traded at 1,634,884 units which were traded through 4,602 transactions. The market capitalization at the end of the day stood at Rs 1,035,190.35 Millions.