Nepse hits new high

Kathmandu, July 14:

The ongoing bullish trend at Nepal Stock Exchange (Nepse) continued for yet another week, as Nepse index maintained an all-time high throughout the week due to soaring share prices of the commercial banks.

The index posted a sound double-digit growth of 27.72 points, as the country’s sole secondary market escalated to its new height of 643.15 points at the end of this week. The market has been overheated with a notable increase of gullible investors for the last two months.

The bullish capital market opened its trading at 614.43 points on Monday and continued to climb up everyday setting a new record. The growth is supported mainly by gains in the share prices of commercial banks, insurance companies and hydropower companies.

Although the analysts term current growth ‘unjustifiable’, stating that the market has been overheated due to ‘rumour-driven trend’, the bullish mood in the share market prevails amid soaring speculative buying and investors’ expectations that the economy will gain momentum.

The weekly turnover, however, dropped this week to Rs 297.8 million with 914,428 unit shares having been traded through 2,357 transactions, against last week’s figure of Rs 497.4 million through the trading of 1,453,396 shares. Out of 91 total listed companies for share trading, only 65 saw their transactions this week.

The trading took place four days under a regular lot. Stock trading registered a continuous growth over the week with its index climbing to 620.61 points on the second day, 633.02 points on the third day before closing at 643.15 points on the last day.

The group wise share trading analysis shows that all major groups including commercial banks, finance, hydropower and insurance groups each registered growth this week.

The commercial banks group, which is the largest scrip by volume and aggressive performer at the Nepse, continued with a significant jump of an impressive growth of 42.32 points. The commercial group’s index closed higher at 726.88 points from the opening 684.56 points. The group had also registered a sound double-digit growth last week, too.

Likewise, the finance group posted a growth of 3.51 points, as it’s trading soared to 470.16 points from the opening 466.65 points.

Among the gainers, the insurance group, too, managed a growth of 8.21 points. The group’s trading that opened at 596.84 points went up to 605.05 points on the closing day.

The hotel group’s index also registered 4.51 points growth and closed at 247.45 points, while the hydropower companies’ group gained 2.66 points and closed at 838.54 points.

The development bank group, meanwhile, suffered a marginal loss, as its index slid to 536.47 points from the opening 536.69 points.

The trading, manufacturing and the other gro-ups, meanwhile, remained constant at 155.21 points, 348.63 points and 818.12 points, as these groups didn’t have a single transaction throughout the week.

National Hydropower Co Ltd continued to top all other companies in terms of the largest share trading for the week. The company’s 625,800 unit shares exchanged hands at Nepse floor for Rs 115,897,400 through 462 transactions.

Nepse floor remained open for four days, where the shares of Nabil Bank, Nepal Investment Bank, Standard Chartered Bank, Himalayan Bank, Nepal SBI Bank, Nepal Bangla-desh Bank, Bank of Kathm-andu, Everest Bank, NIC Bank, Machhapuchhre Ba-nk, Kumari Bank, Lumbini Bank, NCC Bank and Siddhartha Bank were traded throughout the week.