Nepse clocks a fresh high
Kathmandu, May 23
The Nepal Stock Exchange (Nepse) index recorded a fresh high today as the benchmark index surged by 0.97 per cent or 14.68 points to rest at 1,524.07 points, witnessing the highest daily turnover on record of Rs 1.45 billion.
The bull-run in the stock market today was led by the insurance sector. The insurance sub-index surged by 261.03 points or 3.48 per cent to land at 7,768.16 points.
Banking, hotels, development bank, and manufacturing and production also witnessed gains today as their sub-indices surged by 0.74 per cent to 1,421.81 points; 0.06 per cent to 1,923.01 points; 0.84 per cent to 1,493.91 points; and 0.15 per cent to 2,187.65 points, respectively.
However, hydropower, finance and others sub-groups ended in red zone — dipping 0.46 per cent to 2,246.93 points; 0.34 per cent to 723.69 points; and 0.3 per cent to 773.04 points, respectively.
The local bourse has been northbound since last Tuesday, as buyers are making investment to reap the benefits before the market saturates, according to Prakash Rajaure, general secretary of Nepal Stock Investors Association. Investors have also been attracted to the banking and insurance stocks in the recent days due to encouraging third quarterly balance sheets of the banks and insurance companies.
It is reported that investors have also flocked to the stocks of insurance companies in expectation of the new law for the sector that is being drafted. The new law, it is said, would require the insurance firms to raise their capital.
This is similar to the phenomenon seen after investors grabbed the stocks of commercial banks after the Nepal Rastra Bank, last year, introduced the provision to raise capital of the class ‘A’ finance companies by four-fold by mid-July of 2017.
Today’s turnover amount of Rs 1.45 billion was 16 per cent higher as compared to Sunday, when the traded amount stood at Rs 1.25 billion. In total, 3.36 million shares of 135 firms changed hands through 6,001 transactions today. The sensitive index rose 0.98 per cent to 329.82 points. Likewise, float index also went up 0.95 per cent to 111.06 points.
Namaste Bittiya Sanstha, Saptakoshi Development Bank, Pacific Development Bank, Karnali Development Bank and NMB Microfinance Bittiya Sanstha ranked as top five gainers, as their stock price surged between nine per cent to 9.95 per cent.
Meanwhile, Synergy Finance, Unnati Finance, Kanchan Development Bank, Ridi Hydropower Development Company and Hama Merchant and Finance were the top five losers of today.