Nepse jumps 4.26pt on budget announcement

- POST REPORT, Kathmandu
Nepse jumps 4.26pt on budget announcement

Jul 15, 2015-

The presentation of the government budget sent pulses racing at the Nepal Stock Exchange (Nepse) with the index jumping 4.26 points to close at 950.72 on Wednesday. Similarly, turnover swelled 32 percent to Rs342.78 million.

The secondary market rose even though the government’s annual financial plan contained no major programmes to boost the capital market, said stockbrokers.

The budget announcement stated that the involvement of the Citizen Investment Trust (CIT) would be promoted to develop the secondary market, but the government has been saying that for many years and nothing has happened, said stockbrokers.

When the stock market slipped to its lowest ebb in 2011, the government had planned to use CIT as a market maker to stabilize the secondary market. Narendra Raj Sijapati, president of the Nepal Stockbrokers’ Association, said that investors were eager to invest even though the budget did not contain notable programmes to boost the secondary market. “With the fiscal year coming to a close, companies are keen to carry out matching investment in order to show an impressive annual financial statement,” he said.

All the sub-indices were up except for the trading and others groups. The hotels group was the top gainer with a jump of 37.29 points. Prabhu Bank’s promoters’ shares witnessed the biggest turnover of Rs49.066 million. Market capitalization reached Rs978.58 billion on Wednesday.

Published: 16-07-2015 08:06

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