NEPSE RALLIES BY DOUBLE DIGIT; SURPASS 880 LEVEL

Sharesansar, 2nd June:

Investors looking for pro-market budget continue to drive the only stock market of Nepal to new pinnacle. The market index today gained 10.99 points to settle at new height of 880.17 level.

Traders and investors remain optimistic that market will boost to new all time high, spurred by pro-market government’s upcoming budget. In the last one week time, the benchmark index has rallied by more than 20 points following the news of budget likely to address the stock market issues.

“It is high time market witnessed a bullish rally following a month of sluggish transition,” says Mr. Vivek Bajracharya, one of the investor from Broker No 39 (Sumeru Securities).

He further states “If news is to go by, the upcoming budget is addressing some key issues related to the stock market which is focused on making the secondary market much more investor friendly.”

He also added that the demand in banking scrips has once again gain momentum and is now covering over 40 percent of market total turnover which is very much good sign for upcoming days in the market as banking sector weighs 80 percent of market capitalization.

With the surge in banking scrips, the market turnover has witnessed mammoth increase. The daily average turnover in current scenario is more than Rs 430 million which is more than double than last year corresponding period figure.

The market turnover today also surpass Rs 500 million as it tallied at Rs 539,145,792 with 959,154 units of share trade through 3,246 transactions.

It is evident that Banking and Nepse have high positive correlation than remaining subgroups because of its sole high coverage.

Banking sector today added 9.63 points to its tally. Similarly, Others, another heavyweight of the market, also made healthy rally as it gained 14.1 points.

Likewise, Development and Finance, two of the remaining banking and financial related sub-indices, also increased by 4.33 points and 3.61 points respectively.

As for remaining sub-indices, Hotels inclined by 31.68 points, Hydro surged by 22.85 points and Insurance propelled by 56.71 points.

All in all, the scrips of 144 companies were traded, out of which 84 scrips gained, 17 remained intact and 42 scrips lost.

The best performer for the day was, Neco Insurance Co. (NIL), closed at Rs 254, with Rs 23 or 9.96% gain. Whereas, Kakre Bihar Bikash Bank Ltd. (KKBL), closed at Rs 291, was the worst performer today with Rs 32 or 9.91% loss.

While, Chilime Hydro Power Co.(CHCL), which closed at 2395, continued to rule the day as the scrip today also had the highest turnover. Altogether, 30,441 units of shares were traded through 220 transactions worth Rs 73,756,880.

The broker with the highest standalone dealing of the CHCL was Broker No 45 (Imperial Securities Co .Pvt.Limited) with 7.81 percent totaling 4,815 shares trade amounting Rs 11,644,524 via 30 transactions, which include six matching transactions tallying 1,333 shares units worth Rs 3,218,149.