Nepal | May 24, 2019

Benchmark index rebounds by 39.16 pts

Himalayan News Service

Kathmandu, March 27

The Nepal Stock Exchange (Nepse) index rebounded by 39.16 points or 3.35 per cent today after the benchmark index had plunged heavily by 51.89 points on Monday.

Stock market analysts have said that the stock market has rebounded on expectations that the finance minister will do something to correct the slide in the share market. Expectations have arisen after parliamentarians sought the opinion of the finance minister about the bearish trend of stock market since last month after the formation of the new government.

Reportedly, the Ministry of Finance is preparing to address this issue through the white paper in the near future.

Share market analyst, Prakash Rajaure, said that the market has plunged in recent days as investors, who were
already under pressure to sell stocks due to the hike in interest rates by banks and financial institutions, were further alarmed by the government’s policy to tighten credit to the unproductive sector.

Investor sentiment has received a boost today as the issue has been put forward in the parliament, as per Rajaure.

Opening at 1,168.55 points today morning, benchmark index rose by 39.16 points to 1,207.71 points by day’s closing.

The sensitive index, which gauges the performance of class ‘A’ stocks, rose by 8.09 points or 3.24 per cent to 257.74 points. Similarly, the float index that measures the performance of shares actually traded also went up by 2.93 points or 3.49 per cent to 86.91 points.

In total, 1.54 million shares of 166 companies that amounted to Rs 511.55 million were traded through 16,638 transactions today.

All the sub-indices except trading landed in the green zone today. The hotel sector witnessed the largest gain today as the hotel sub-group increased by 7.56 per cent to 1,797.16 points. The banking sub-index went up by 3.17 per cent or 33.27 points to 1,083.18 points. Similarly, development banks sub-index increased by 2.99 per cent or 41.7 points to 1,436.89 points by the day’s closing.

Likewise, hydropower sub-group climbed up by 4.5 per cent or 61.77 points to 1,435.27 points. The finance and insurance sub-indices also went up by 0.38 per cent and 5.54 per cent to 644.18 points and 5,594.41 points, respectively.

Manufacturing, others and microfinance sub-indices went up by 0.7 per cent, 0.58 per cent and 5.1 per cent to 2,138.04 points, 674.70 points and 1,349.33 points, respectively, today. However, the trading sub-index plunged by 1.49 per cent to 206.66 points by the day’s closing.

NMB Microfinance Bank, Oriental Hotels, Radhi Bidhyut Company, Rastriya Beema Company and Life Insurance Company Nepal were the top five gainers today. Similarly, Janaki Finance, Vijaya Laghubitta Bittiya Sastha, Ridhi Hydropower Company, Chhyangdi Hydropower and Bishal Bazar Company were the top five losers of the day.

 


A version of this article appears in print on March 28, 2018 of The Himalayan Times.


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