Nepse index reaches 28-month high
KATHMANDU, NOV 8:
Nepse index has reached a 28-month high as the bullish run continues unabated.
The benchmark index reached 475.15 points today as more investors are being attracted towards shares. The index gained 11.79 points, as investors want to make purchases before there is a political consensus regarding the budget and prices shoot further up.
“The last time there was a political consensus regarding the integration of combatants, the Nepse index jumped out of dumps back in April. Investors are, at
present, buying shares anticipating a similar rise following another political consensus,” said share analyst Rabindra Bhattarai.
Among the shares of the 97 companies that were traded today, shares of only 15 firms ended up in the red.
Today, 384,191 unit shares worth Rs 118 million, belonging to 97 companies, were traded in 1606 transactions at Nepse.
The increased number of share transactions and scrips show the increase in number of investors.
The index was this high last in March 2010. Since December 2010, it had plunged below 400 points and even reached 292 points in June 2011. In the last one year, the index was bobbing over 300 points and started to rise since April.
The lack of alternative areas of investment following
a slow down in real estate has increased the number of investors in the stock market, said Bhattarai, who is also managing director of Securities Research Center and Services.
Due to increased share prices, market capitalisation of the stock exchange increased by almost Rs 10 billion to Rs 450 billion today from yesterday’s market
capitalisation that stood at Rs 439 billion.
Today, all the subgroups, except for hotels, were able to register gains.
Commercial banks became the biggest earner of the day by gaining 18.97 points, followed closely by hydropower companies that gained 15.9 points.
Promoter shares of Kamana Bikas Bank and Nabil Bank were the day’s biggest gainers whose share prices shot up by 10 per cent. Clean Energy Development Bank was the biggest loser of the day with a seven per cent decline in share prices.
Source: THT
