Nepal | September 21, 2020

Nepse breaks previous records, hits another all-time high

Himalayan News Service
Share Now:

Kathmandu, February 17

Nepal Stock Exchange (Nepse), which had started retreating following the lifting of the border blockade, witnessed a buying spree today, prompting the benchmark index to hit a fresh all-time high of 1,266.08 points.

The index, which opened at 1,257.34 points, advanced by 8.74 points, or 0.7 per cent, as demand for shares of banks, financial institutions and insurance companies went up.

“Investors are grabbing shares of financial sector companies, as most of these firms have come up with impressive balance sheets in the second quarter,” Stockbroker Anjan Poudel said.

During today’s trading, banking sub-index gained 8.97 points, or 0.78 per cent, to end at 1,156.10 points. Most of the heavyweights of the banking sector, such as Nabil Bank, Standard Chartered Bank Nepal, Nepal Investment Bank, Everest Bank and Himalayan Bank, saw moderate hike in their share prices.

Insurance sub-index, on the other hand, jumped 28.16 points, or 0.51 per cent, and closed at 5,567.44 points.

“Demand for insurance stocks is still pretty high because of rumours that the insurance sector regulator will soon instruct insurers to raise their paid-up capital. Such a ruling will compel most of the insurance companies to issue more bonus and rights shares,” Poudel said.

Although the investor confidence was high today, hydro sub-index ended the day in the red territory.

“Selling pressure is mounting on shares of hydropower companies because of allure created by stocks of the financial sector. Also, fuel supply situation has not fully normalised, despite lifting of the blockade, which is being seen as a deterrent,” Poudel said.

Except this hiccup, all other sub-indices booked gains today.

“Investors are thronging the stock market because there are not many investment avenues in the country,” Poudel said. “Also, falling deposit and lending rates have worked as incentives for investors.”

Normal savings deposit rates at many commercial banks now hover around one per cent. Considering inflation of 11.6 per cent, depositors, in real terms, are losing money by parking funds at banks.

“So, some of these depositors are also buying stocks,” Poudel said.

But even those who do not have cash in hand are getting drawn towards the stock market because credit is becoming cheaper with the fall in lending rates.

“What’s more, many financial institutions that previously showed reluctance to extend credit against security of dematerialised shares have started offering loans against the electronic stocks. So, easy availability of credit is also attracting investors towards the stock market,” Poudel said.


A version of this article appears in print on February 18, 2006 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Photo Gallery: Rohingya refugees receive relief in Kapan amid COVID-19 crisis

KATHMANDU, SEPTEMBER 21 Hiteri Foundation provided food relief packages to long-persecuted Rohingya Muslim refugees here in Kapan on Sunday, September 20. More than 175 families are taking shelter in Kapan after entering Nepal following a mass exodus from their native Myanamar. Also seen in pi Read More...

Nepali Army soldier Nepal’s first security person to die of COVID-19

KATHMANDU, SEPTEMBER 20 Country witnessed the first death of a security person due to COVID-19. The deceased, a 34-year-old soldier of Nepali Army was posted in Kathmandu. He hailed from Ramechhap district. However, Nepali Army has not yet revealed the identity of the deceased. The deceased wa Read More...

Mane double eases Liverpool to 2-0 win over 10-man Chelsea

LONDON: Two goals from Sadio Mane just after halftime eased champions Liverpool to a 2-0 win over 10-man Chelsea in the Premier League season's first heavyweight clash at Stamford Bridge on Sunday. A dull game never threatened to live up to the eight-goal thriller when the sides met in Read More...

Son and Kane combination leads Spurs rout of Southampton

SOUTHAMPTON: Son Heung-min scored four goals set up by Harry Kane as Tottenham Hotspur came from a goal down to overwhelm Southampton 5-2 on Sunday and earn their first Premier League win of the season. In an action-packed first half at St Mary's, both sides had a goal ruled out by VAR before Read More...

Women, children highly affected by COVID pandemic

KATHMANDU, SEPTEMBER 20 The National Women Commission today organised a webinar on ‘Impact of COVID-19 on Women and Initiatives Taken by NWC and Nepal Police in Addressing Gender Based Violence Issues’ to highlight impact of pandemic on women and children across the country. According to t Read More...

Thapa vows to establish RPP as strong force

KATHMANDU, SEPTEMBER 20 Chairperson of Rastriya Prajatantra Party Kamal Thapa today pledged to establish the party as a strong force. The country would become prosperous and sovereign only by pursuing the ideology RPP as Nepal is faced with complex geo-political situation, he claimed at a virt Read More...

NCP Secretariat dwells on Cabinet reshuffle

KATHMANDU, SEPTEMBER 20 The Secretariat of the ruling Nepal Communist Party (NCP) today began discussion on Cabinet reshuffle. NCP Spokesperson Narayan Kaji Shrestha said the meeting discussed policy issues regarding the Cabinet reshuffle from different angles, but it did not take a decision o Read More...

Ministry of Urban Development

Bancharedanda landfill site to be completed by mid-October

KATHMANDU, SEPTEMBER 20 State Minister of Urban Development Rambir Manandhar said construction of a sanitary landfill site at Bancharedanda on the border of Nuwakot and Dhading districts will be completed by mid-October. During monitoring of the under-construction landfill site today, State Mi Read More...