Nepse posts double-digit growth
KATHMANDU, OCT 31 -
The Nepal Stock Exchange (Nepse) posted a double digit growth of 11.13 points as the trading resumed on Tuesday after the 12-day Dashain break. The Nepse index which opened at 436.7 points closed at 447.83 points at the end of the trading hours.
The group representing commercial banks recorded a sharp rise in its index, registering a growth of 14.81 points to settle at 382.43 points. Hydropower companies also witnessed a rise, going up by 14.58 points to close at 945.54 points. Similarly, the group representing development banks, finance companies, insurance and others registered growth of 1.26, 0.28, 7.72 and 14.09 points respectively. The index of manufacturing companies and trading firms, however, remained unchanged.
Commercial banks’ index surged on the back of of Nepal SBI Bank. Kist Bank and Grand Bank among others witnessed increase in their share prices. Likewise, stock prices of Butwal Power Company and Chilime Hydropower Company increased by Rs 10 and Rs 20 respectively, furthering the growth of index representing the hydropower companies.
According to stock analysts, investors are expecting further rise in price. “Investors are thinking that price will rise further and that they will have to pay higher price in future,” said Anjan Raj Poudyal, president of Stock Brokers Association of Nepal. “Currently, people are in hurry to invest in the capital market.”
Investors’ excitement in the capital market was mainly because of the performance and dividend distribution of the blue chips companies listed on Nepse, added Poudyal. “The market is stable now and it will rise further, although the growth rate may not match that of Tuesday,” said Poudyal.
So far, only Citizens Bank International has published the financial highlights of the first quarter, showing a healthy growth in profit compared to corresponding period last year.
Beside the growth of market index, the volume of transaction at the exchange too was satisfactory with Nepse realising a total turnover worth Rs 39.53 million on Tuesday. A total of 160,181 shares changed hands in 829 transactions on the day that resulted in the market capitalisation of Rs 424.07 billion.
Source: The Kathmandu Post
