NEPSE SURGE FOR FOURTH STRAIGHT DAY; HIGH DEMAND OF BANKING SCRIPS

Sharesansar, 3rd June:

Traders and Investors optimism toward the upcoming budget continued to drive the market further up. The stock market of Nepal today gained additional 4.53 points to settle at 884.70 level.

In the run up to the budget, the investors’ sentiment toward banking scrips is becoming stronger. However, the scenario was different few weeks back as investors and traders preferred insurance to banking scrips in expectation of bonus shares.

Now, as the insurance sector is in inflated situation the investors and traders are shifting toward banking scrips. In the last two days, banking scrips alone covered nearly half of market turnover while today it covered more than half of the total turnover of Rs 526.60 million.

“The market is anticipating provision regarding new banking and financial institutions from the upcoming budget,” says one of the investors in anonymity, “this is why market is reacting positive towards banking scrips.”

Banking sector in build up to such sentiment today also propelled by 9.16 points.

Likewise, Development and Finance, two of the remaining sub-indices related to BFIs, also incremented by 3.1 points and 3.3 points respectively.

As for remaining sub-groups, Others increased by 3.52 points, Hotels surged by 5.3 points, Hydro dropped by 26.55 points and Insurance suffered loss of 35.61 points. While, Manufacturing remained intact at 1170.51 level.

All in all, the scrips of 148 companies were traded, out of which 86 scrips gained, 12 remained intact and 50 scrips lost.

The best performer for the day was, Neco Insurance Co. (NIL), closed at Rs 279, with Rs 25 or 9.84 percent gain. Whereas, Jebils Finance Ltd. (JEFL), closed at Rs 135, was the worst performer today with Rs 13 or 8.78 percent loss.

While, Chilime Hydro Power Co.(CHCL), which closed at 2370, continued to rule the day as the scrip today also had the highest turnover. Altogether, 26,131 units of shares were traded through 203 transactions worth Rs 61,480,191.

The broker with the highest standalone dealing of the CHCL was Broker No 41 (Linch Stock Market Limited) with 10.82 percent totaling 5,663 shares trade amounting Rs 13,313,084 via 49 transactions, which includes one matching transaction of 149 share units worth Rs 348,660.