Nepse transactions jump 225pc

- POST REPORT, Kathmandu
Nepse transactions jump 225pc

Aug 1, 2015-

Nepal Stock Exchange (Nepse) last week recorded a whopping 225.29 percent jump in transactions to Rs3.03 billion.

The number of traded shares too more than tripled to 7,194,720 units over the week.

The market posted its largest ever single-day transaction of Rs1.30 billion on Monday. Stockbrokers attributed the surge to increasing investors’ attraction towards banks and finance companies.

The Nepal Rastra Bank (NRB), in the Monetary Policy 2015-16 unveiled last week, has raised the paid-up capital requirements for banks and financial institutions (BFIs).

And, investors are increasingly pouring money into the sector expecting the BFIs

would issue right’s and bonus shares to comply with the central bank’s directive.

Despite the significant growth in the turnover, the Nepse index plunged 25.97 points to close at 1,027.98 points on Thursday.

Sarita Bistha, managing director of Linch Stock Market, attributed the fall in the index to profit-booking rush. “However, there is a notable buying pressure, which could drive the market further up,” she said.

The market, which opened at 1,053.95 points on Sunday, lost points for the next three days, before recovering 6.65 points on Thursday. The week’s biggest fall came on Tuesday when the market shed 18.26 points.

Of nine trading groups, six lost points, with the hydropower group (down 168.98 points) leading the losers’ side.

It was followed by insurance companies, hotels, development banks, commercial banks and others. Finance companies, trading and manufacturing sectors saw nominal growth in their indices. The sensitive index that measures the performance of A-class companies too slid 3.86 points to close at 220.98 points.

Everest Bank posted the largest individual transaction of Rs224.49 million. It was followed by Nabil Bank, Global IME Bank, Sanima Bank and Nabil Bank (promoter’s shares). Siddhartha Investment Growth Scheme 1 topped in terms of the number of shares traded (1,069,000 units).

Published: 02-08-2015 09:38

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