Nepse index crosses 400-point mark

KATHMANDU, AUG 05:

The capital market registered a growth of 6.18 points last week, with the Nepal Stock Exchange (Nepse) index crossing a benchmark figure of 400 points. The market, which opened at 396.03 points on Sunday, closed at 402.21 points on Wednesday.

The banking sector, which recorded a growth of 5.16 points, was the driving force behind the overall surge in the growth last week. Similarly, the group representing hotel, others, hydropower companies and insurance companies registered the growth of 10.09, 17.62, 20.17 and 11.46 points respectively. The sub-indices representing manufacturing firms, trading companies, finance companies and development banks dropped 0.23, 4.22, 1.61 and 0.11 points respectively.

The capital market is pretty stable at present, according to experts. “The market has weathered the tough times and is heading towards growth,” said Anjan Raj Poudyal, president of Stock Brokers’ Association of Nepal. “The benchmark index is above 400-point mark and for the small market like ours, it is satisfactory.”  

Stockbrokers say that the market will be even better, if other decisions like operation of mutual fund and entry of institutional investors under the Citizens Investment Trust (CIT) materialises.

According to Poudyal, since the market has withstood much difficult time, the investors’ confidence is high at the moment, showing optimistic outlook. The decision to allow banks and financial institutions (BFIs) to extend share purchase loans against the guarantee of stockbrokers has also fueled the investors’ confidence although BFIs are yet to extend such loans.

Poudyal added that some of the BFIs have shown willingness to extend share purchase loans against the guarantee of stockbrokers. “Our association is meeting with the officials of different BFIs to make the share purchase lending more organised,”

said Poudyal.

Although there was a growth in market index, the volume of transaction was little lower compared to last week as the trading was limited to four days with Thursday being a national holiday. The exchange registered a total transaction worth Rs 208.07 million last week, down by 54.84 percent compared to Rs 460.07 million in the previous week.

Chilime Hydropower Company posted the highest individual turnover of Rs 34.57 million. Kist Bank topped the chart in terms of number of shares traded with the trading of 139,180 shares. Chilime also saw highest number of transaction with 365 of it. 

Source: The Kathmandu Post