NEPSE RALLIES FOR SIXTH CONSECUTIVE TRADING DAYS; INSURANCE SECTOR WITNESS MASSIVE SURGE

Sharesansar, 1st July:

The optimism of investors toward listed scrips continued to boost the secondary market of Nepal to new high.

The benchmark index continuing its rally for six straight trading day added 10.78 points as investors and traders opted to accumulate more insurance scrips along with hydro scrips. By the end of the day, the market index settled at 956.60 level.

Despite the inflated position of insurance sector, it continues to climb to new heights. The sector today surged by massive 248.45 points.

“The market is anticipating huge amount of investment in insurance scrips by banking and financial instructions post fiscal year end,” says one of the investors, “because of which more and more investors and traders are luring towards this sector’s scrips.”

He goes on to explain that banking and financial institutions book their profit prior fiscal year end to maintain healthy financial statement and to avoid provisioning, and in the start of the new fiscal year they again start to invest in the secondary market. Because of which investors and traders accumulated shares knowing that there will be high demand of these shares in future date from banking and financial institutions.

In same manner, hydro scrips were also well received in the market today as the Hydro sub-index added 55.03 points.

Similarly, Banking, Development and Finance increased by 0.74 point, 10.89 points and 2.52 points respectively. Likewise, Manufacturing added 0.75 points.

While, Trading, Hotels and Others suffered loss of 3.21 points, 9.84 points and 3.52 points respectively.

All in all, the scrips of 150 companies were traded, out of which 99 scrips gained, 10 remained intact and 41 scrips lost.

The best performer for the day were, Malika Bikash Bank Limited (MDBL), closed at Rs 209, and Prudential Insurance Co. (PICL), closed at Rs 528, with 10 percent gain i.e. Rs 19 and Rs 48 respectively. Whereas, Peoples Finance Limited. PFCL), closed at Rs 157, was the worst performer today with Rs 15 or 8.72 percent loss.

In terms of turnover, Chilime Hydro power Co. (CHCL), closed at Rs 2560, had the highest turnover today. Altogether, 31,054  share units of CHCL were traded through 167 transactions worth Rs 78,168,212.

The broker with the highest standalone dealing of the CHCL was Broker No 10 (Pragyan Securities Pvt. Limited) with 15.68 percent totaling 9,770 shares trade amounting Rs 24,518,132
via 42 transactions, which include 11 matching transactions tallying 1,154 share units worth Rs 2,905,490.

The market turnover today stood at Rs 648,458,752, with total number of shares traded at 1,331,361 units which were traded through 4,270 transactions. The market capitalization at the end of the day stood at Rs 975,953.78  Millions.