Print Edition - 2017-03-30 | MONEY
Transaction soars as investors book profits
Mar 30, 2017-
The Nepal Stock Exchange (Nepse) posted a single-day transaction of Rs2.56 billion on Wednesday as investors rushed to book profits after the recent rally. An all-time high single-day transaction of Rs2.75 billion was recorded on July 27, 2016.
The market has seen a bullish trend since the beginning of last week, gaining 230.95 points in the last eight days of trading. Share prices increased by a total of Rs263.1 billion with market capitalisation reaching Rs1802.43 billion, up from Rs1,539.33 billion.
“The large volume of transactions was observed as short-term investors rushed to book profits gained in the past few days,” said Anjan Raj Poudel, managing director of Thrive Brokerage House. “Investors who have been disappointed by a sustained drop in the Nepse during the last four months expect to recover their losses following the recent rally.”
The daily transaction volume has been going downhill for the last eight months since hitting an all-time high on July 27.
The average daily turnover had been hovering around the Rs500 million mark before the market bounced back last week with transactions swelling to Rs1.15 billion daily.
Despite the rise in turnover, the Nepse shed 22.33 points to close at 1,588.29 on Wednesday. Poudel described the fall in the Nepse as market correction. “A slight fall in the index was expected after rising constantly for so many days,” he added.
Promoter shares of Nepal Bangladesh Bank posted the largest turnover worth Rs380.6 million. Sagarmatha Insurance led with a gain of Rs65 per share while Rastriya Beema Company witnessed the largest fall of Rs1,200 per share.
All groups except trading posted a drop in their indices. The largest fall of 152.32 points was observed by the insurance group. Hydropower lost 73.99 points, followed by hotels (-66.27 points), commercial banks (-20.05 points) and development banks (-16.98 points).
Published: 30-03-2017 09:50