Nepse starts first day of FY with a bang
KATHMANDU, JUL 18 -
The Khetan Group sold its shares worth Rs 720 million in Bottlers Nepal, the bottler of Coca-Cola, on Sunday to Gurkha Brewery. Gurkha Brewery purchased Khetan’s 428,000 units of shares through the secondary market.
Khetan Group seeks to invest the amount received from the sales of the shares in Laxmi Bank to increase its paid-up capital. Khetam Group is Laxmi Bank’s promoter.
Rajendra Khetan, chairman of the group, said they seek to increase Laxmi’s paid-up capital to Rs 5 billion. The group also has 10 percent stake in Gurkha Brewery.
With such a huge transaction, the Nepal Stock Exchange (Nepse)’s overall transaction rose to a whooping Rs 746 million on Sunday.
With the new budget announcing a number of measures to revive the stock and financial markets, the Nepse responded positively in the first trading day of new fiscal year, gaining 19.18 points.
All the groups, except manufacturing, witnessed a rise in their indices. Banking and others led the upward movement of the Nepse.
Due to a sudden rise in the stock index, the Nepse had to suspend the market operation (circuit breaker) thrice. Nepse applies circuit breakers when the index moves by 3 percent, 4 percent and 5 percent. It suspended trading for Sunday at 1.31 pm, although its usual closing time is 3 pm.
“The budget taking measures to address the problems of the stock market and the banking sector resulted in enhanced investors’ confidence,” said Anjan Raj Poudyal, president of the Nepal Stockbrokers’ Association. Stockbrokers said the number investors willing to purchase shares was more than those willing to sell on Sunday. “Investors are willing to purchase stock on a large scale too,” said Poudyal.
The situation was quiet opposite when the market was witnessing a bearish run until a few weeks ago before it bounced back from the lowest ebb of 292.32 points on June 15. The new Finance Act reduced the capital gain tax on securities transactions to 5 percent from 10 percent for individual investors and 10 percent from 15 percent for institutions effective from Sunday.
Source: Kantipur
The Khetan Group sold its shares worth Rs 720 million in Bottlers Nepal, the bottler of Coca-Cola, on Sunday to Gurkha Brewery. Gurkha Brewery purchased Khetan’s 428,000 units of shares through the secondary market.
Khetan Group seeks to invest the amount received from the sales of the shares in Laxmi Bank to increase its paid-up capital. Khetam Group is Laxmi Bank’s promoter.
Rajendra Khetan, chairman of the group, said they seek to increase Laxmi’s paid-up capital to Rs 5 billion. The group also has 10 percent stake in Gurkha Brewery.
With such a huge transaction, the Nepal Stock Exchange (Nepse)’s overall transaction rose to a whooping Rs 746 million on Sunday.
With the new budget announcing a number of measures to revive the stock and financial markets, the Nepse responded positively in the first trading day of new fiscal year, gaining 19.18 points.
All the groups, except manufacturing, witnessed a rise in their indices. Banking and others led the upward movement of the Nepse.
Due to a sudden rise in the stock index, the Nepse had to suspend the market operation (circuit breaker) thrice. Nepse applies circuit breakers when the index moves by 3 percent, 4 percent and 5 percent. It suspended trading for Sunday at 1.31 pm, although its usual closing time is 3 pm.
“The budget taking measures to address the problems of the stock market and the banking sector resulted in enhanced investors’ confidence,” said Anjan Raj Poudyal, president of the Nepal Stockbrokers’ Association. Stockbrokers said the number investors willing to purchase shares was more than those willing to sell on Sunday. “Investors are willing to purchase stock on a large scale too,” said Poudyal.
The situation was quiet opposite when the market was witnessing a bearish run until a few weeks ago before it bounced back from the lowest ebb of 292.32 points on June 15. The new Finance Act reduced the capital gain tax on securities transactions to 5 percent from 10 percent for individual investors and 10 percent from 15 percent for institutions effective from Sunday.
Source: Kantipur
