Kathmandu, November 30

A continuous bull-run in the stock market since the last three days has propelled the Nepal Stock Exchange (Nepse) index above the 1,600-point threshold. The benchmark index, today, surged by 3.52 per cent or 54.65 points to land at 1,608.33 points.

According to stock market analysts, the rise in the index is due to the buying spree in the stock market in recent days to reap benefit of cheaper stock prices as the market tumbled for three consecutive weeks till last week. “The market is expected to continue on a bull run until it meets the threshold of 1,700 points. Then there will be selling pressure in the market again,” said Prakash Rajaure, general secretary of Nepal Stock Investors Association.

The downfall of the stock market for three consecutive weeks was largely determined by the attractive interest rates on deposits being offered by banks and financial institutions (BFIs). The demonetisation of INR 500 and INR 1,000 currency notes also put pressure on investors holding high amount of such notes to sell their shares due to the cash crunch they witnessed to run their day-to-day business.

The market opened at 1,553.68 points today and surged to 1,590.55 points within an hour. It again dipped back to 1,559.53 points in the next half hour, after which the local bourse rebounded steadily to close at 1,608.33 points.

The sensitive index, which gauges the performance of class ‘A’ stocks rose by 12.34 points or 3.67 per cent to 348.32 points and the float index that measures the performance of shares actually traded surged by 4.26 points or 3.67 per cent to 120.09 points.

While all the other sub-indices landed in the green zone today, the hotel sub-index remained stagnant at 1,959.19 points. Insurance sub-group was the top gainer today as it surged by 4.4 per cent or 326.09 points to 7,739.22 points, followed by banking sub-group, which went up by 3.96 per cent or 58.74 points to stand at 1,541.44 points.

Likewise, development banks rose by 3.66 per cent or 57.88 points to rest at 1,641.13 points. Finance sub-index went up by 3.1 per cent or 23.21 points to settle at 771.05 points and hydropower sub-index rose by 2.49 per cent or 49.84 points to 2,049.54 points. There was nominal change in others sub-group as it ascended by 0.85 per cent or 6.36 points to land at 751.09 points.

Altogether, 1.53 million scrips of 135 companies worth Rs 1.36 billion changed hands through 8,689 transactions today.