Nepse index reaches 26-month high
KATHMANDU, NOV 04:
Investors have more reason to celebrate post Dashain, as Nepse index reached a 26-month high this week –– October 30 to November 1.
The benchmark index gained 11.28 points in the week’s trading, as stock prices of commercial banks, hydropower companies and insurance companies surged. Investors, at present, are buying stocks with the hope that after mutual funds enter the market, stock prices will further go up. Siddhartha Mutual Fund is getting ready to launch its New Fund Offer before Tihar, and Nabil Mutual Fund will be coming out before long.
The market that opened at 436.71 points on Tuesday afternoon after the Dashain holidays reached 447.84 points by the end of the day. The following day, the index further moved to 451.43 points –– a 26-month high. Then on Thursday, the market retreated a little to 447.99 points.
Investors seem to have regained their faith in commercial banks that gained 20.41 points as major commercial banks registered lucrative gains. Hydropower companies continued to perform well by earning 33.24 points. Likewise, insurance companies’ good streak continued this week as it went up by 12.5 points.
Hotels, finance companies and development banks earned 0.38 points, 1.27 points and 2.61 points, respectively in the week’s trading. The biggest loser of the week was the others subgroup that lost 15.27 points as Nepal Telecom lost Rs eight per unit share.
The stock exchange saw transaction volume decline by 7.56 per cent in three trading days of the week in comparison to the previous trading week. A total of 548,440 unit shares worth Rs 153.2 million of 102 companies were traded in 3130 transactions. In the previous week, 612,000 unit shares worth Rs 165.7 million were traded.
Stock trading of class ‘A’ companies accounted for 55.54 per cent of total trading amounting to Rs 85.1 million. The sensitive index that measures the performance of blue chip stocks gained 2.47 points. The indicator of the performance of actual shares traded –– float index –– gained 0.62 points to reach 31.68 points.
This week, Nepal Telecom was the forerunner in terms of trading volume with shares traded worth Rs 10.9 million. In number of transactions, Multipurpose Finance topped with 277 transactions. In terms of number of shares traded, Kist Bank was the forerunner with trading of 48,360 unit shares.
The top five performers of the week were Nepal Telecom (Rs 10.94 million), Bank of Kathmandu (Rs 10.45 million), Kist Bank (Rs 9.45 million), Chilime Hydropower (Rs 9.21) and Arun Valley Hydropower Company (Rs 8.59 million).
Source: THT
