Print Edition - 2014-06-15 | MONEY
First time in 68 mths, Nepse tops 900
Jun 14, 2014-
Nepal Stock Exchange posted a double-digit growth of 21.4 points last week to close at 904.61 points. This is the first time in the last 68 months the benchmark index surged past the 900-point mark.
The index was at 918.15 points on 26 October, 2008, following which it started to decline. It had hit its lifetime high of 1,175 points on August 31, 2008. The market, which opened on Sunday at 883.21 points, posted gains throughout the week. The biggest single-day gain came on Tuesday when the market rose 9.81 points.
The growth has been attributed to increasing investor confidence ahead of the budget for the next fiscal year. “With the possibility of the budget replacing the existing capital gain tax with transaction tax, investors are on a buying spree,” said Anjan Raj Poudel of Thrive Brokerage.
The Securities Board of Nepal, along with investors, has suggested the government to adopt transaction tax instead of capital gain tax. The existing capital gain tax rate is 5 percent for individual investors and 10 percent for institutional investors. Poudel said the rise in the Nepse backed by rising trade volumes symbolises growing investor confidence.
Of the nine trading groups, seven registered gains last week. The Hotels group was the biggest gainer (up 58.25 points).
Only two trading groups—Others and Manufacturing—posted losses. They were down 16.45 and 4.57 points, respectively.
The sensitive index, which measures the performance of ‘A’ class companies, inched up 5.3 points to close at 195.05 points.
NCC Bank posted the highest individual transaction of Rs 192.047 million. Chilime Hydropower Company, Century Commercial Bank, Nepal Bangladesh Bank and Civil Bank rounded out the top five.
With 1,393,000 units of its shares changing hands, Siddhartha Growth Scheme topped in terms of the number of shares traded.
The overall market turnover grew 10.17 percent to Rs 2.56 billion, while the number of shares traded also increased to 7,897,390 from 5,486,688 over the week.
Published: 15-06-2014 09:11