HIMALAYAN NEWS SERVICE
KATHMANDU: Investors have poured in to blue chip stocks as the stock market continued its trampoline bounce this week –– May 7 to 10. The Nepse index gained 6.8 per cent on the week’s transaction going up by 7.15 points.
Investors are more interested in stocks of companies belonging to class ‘A’ category. The trading of stock belonging to class ‘A’ companies consisted of 95.67 per cent of the total transaction this week.
The entry of fresh investors in the stock exchange who are touted as being responsible for the current surge has led to more trading of blue chip stocks as they feel safer in purchasing these stocks. The sensitive index that measures the performance of class ‘A’ companies also rose by 2.04 points along with the rising Nepse index.
During first three days, Nepse surged to 432.83 points from Sunday’s opening of 404.25 points. Selling pressure then pulled the index down to 411.40 points by the end of Thursday.
More than 2.5 million unit shares worth Rs 644.7 million belonging to 114 companies were traded in 6256 transactions this week, in four trading days which is 17.04 per cent less than that of last week. Likewise, the indicator of the performance of actual shares traded –– float index –– also went up by a marginal 0.1 points to 32.75 points.
Trading was marred by interruptions due to a connection problem in Nepse’s trading system along with the constant operation of circuit breakers due to the free falling and skyrocketing Nepse index.
This week, except for banking and trading subgroup, the rest subgroup were successful in registering gains. Due to Nepal Telecom’s gains, others registered a gain of 42.28 points, followed closely by the hydropower subgroup that earned 42.28 points.
Development banks, finance companies and insurance companies gained 2.25 points, 2.14 points and 3.45 points, respectively. Banking and trading lost 0.27 points and 7.01 points, respectively.