Volatile Nepse up 14.28 points

KATHMANDU, MAY 28 -

Maintaining its unpredictability, the Nepal Stock Exchange gained 14.28 points to close at 412.87 points on Sunday.

Although there was not much excitement in the first hour of trading and the index remained more or less stagnant, the benchmark index shot up by more than 4 percent within the second hour, forcing the exchange to impose circuit breaker which halted trading for 30 minutes.

As the news of the possible constitution promulgation came out in the media, investors seemed keen on investing,” said Sitaram Thapaliya, chairman of the Nepal Investors’ Forum. “Buying spree superseded supply, triggering share price hike.”

Experts said investors were guided by the assumption that share prices would skyrocket after the promulgation of the new constitution. “If the constitution is promulgated, share prices will rise much higher,” speculated Anjan Raj Poudyal, president of the Stock Brokers’ Association of Nepal. “In such a case, one can make abnormal gains within a short span of time.”

On Sunday, the entire sub-indices went up, except for hotels and trading that remained constant. Groups representing others, hydropower and commercial banks were the biggest gainers—up 23.49, 21.64 and 17.6 points, respectively. Sanima Bank, Grand Bank, Sunrise Bank, Himalayan Bank and Nepal Bangladesh Bank led the gain of banking sub-index. Other major gainers were Chilime Hydropower Company and Nepal Telecom.

On Sunday, Nepse realised a turnover of Rs 107.37 from the trading of 291,931 shares. Bank of Kathmandu posted the highest turnover of Rs 26.01 million.

Source: The Kathmandu Post