Nepse double-digits gain continues

Nepse double-digits gain continues KATHMANDU, June 16 : With the sharp rise in banking group sub-index, Nepal Stock Exchange (Nepse) index has continued the double-digit gains for the second consecutive day in the week.

The benchmark index jumped 11.29 points Monday to close at 938.85 points.

The stock market bounced back following the successful conclusion of the Constituent Assembly election last year. The market had plunged to the all time low of 292.31 points on June 15, 2011 from all-time-high 1,175.38 points on August 31, 2008.

Rise in the market was steady in the recent months. However, the market has observed ´spectacular´ growth in last two days. The country´s only bourse had shot up whopping 22.95 points on Sunday. Stock brokers attribute the rise in the demand of banking shares to the huge surge in recent days.

President of Stock Brokers Association of Nepal (SBAN) Narendra Jung Sijapati told Republica that the market was moving toward setting new record."The market is poised to take off and break all past records. If the pace of the rise continues followed by the positive political and economic developments in the country, Nepse index will cross the record of 1175 points in the coming fiscal year," added he.

Sub-index of banking group, the heavyweight of the Nepse, rose 25.29 points on the day to close at 876.88 points. Hotels and insurance groups also gained 46.68 and 43.42 points, respectively, settling at 1905.32 and 3621.69 points. Development Bank also logged the gain of 8.73 points to finish at 587.5 points.

Others, Finance and Hydropower groups, however, suffered the loss of 46.98, 4.19 and 1.89 points, respectively, closing at 716.66, 445.38 and 2655.87 points.

A total of 1.4 million units of shares of 131 companies worth Rs 695.67 million were traded in the stock market through 4,512 transactions.

Source: Republica