Nepal | September 28, 2020

Nepse index crosses 1500 mark; record trading witnessed

Himalayan News Service
Share Now:

Kathmandu, May 22

The domestic stock market index sailed past 1500-point mark today to close at an all-time high of 1509.39 points, as shares of banking and insurance sectors booked heavy profit.

Also, intraday trading at Nepal Stock Exchange (Nepse), the country’s only share market, hit an all-time high of Rs 1.25 billion today.

The benchmark index today opened at 1499.32 points and rose 10.07 points, or 0.67 per cent, as demand for shares of commercial and development banks, and insurance companies surged.

“Demand for banking and insurance stocks is lately going up as third-quarter balance sheets of banking institutions and insurance companies proved trade disruptions (that extended for over four months from September to February) did not affect their businesses,” said Stockbroker Anjan Poudel.

“Also, the directive issued by the central bank to banks and financial institutions to raise paid-up capital and talks of jacking up minimum paid-up capital of microfinance institutions have played a positive role in raising demand for banking shares.”

Besides, lack of investment opportunities in other areas is compelling investors to turn towards the stock market. This has been fuelled by easier access to credit.

“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, which has become quite cheaper lately because of excess liquidity in the banking sector, is also attracting investors towards the stock market,” Poudel said.

Today, the biggest gainer was Prudential Insurance, whose share price surged by 10 per cent to Rs 1,100. Also, share price of Siddhartha Insurance jumped by 10 per cent to Rs 1,815.

Another biggest gainer was Reliable Microfinance Bittiya Sanstha, whose share value increased by 9.98 per cent to Rs 507. Also, share price of Shikhar Insurance went up by 9.98 per cent to Rs 2,657, while share price of Lumbini General Insurance increased by 9.95 per cent to Rs 1,006.

As demand for banking and insurance stocks is rising, allure for shares of other sectors has started to decline. As a result, hydro, manufacturing and production, and hotels sub-indices ended the day in red today.

A version of this article appears in print on May 23, 2016 of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Students demand justice for Bajhang rape victim in Kathmandu

KATHMANDU, SEPTEMBER 26 Students take to the streets on Saturday demanding justice for a 12-year-old girl whose dead body was found in a temple in Bajhang district on Thursday night. The minor was raped before being killed by the culprit/s. As per local police, investigation into the case in unde Read More...

United earn dramatic win at Brighton with late Fernandes penalty

BRIGHTON: Manchester United beat Brighton & Hove Albion 3-2 away in the Premier League on Saturday after an incredible finale in which Bruno Fernandes struck the winning goal from the penalty spot in the 100th minute of the game. Fernandes's winner, which came after referee Chris Ka Read More...

Chelsea recover from three goals down to draw at West Brom

Chelsea striker Tammy Abraham struck a 93rd-minute equaliser as they battled back from three goals down to draw 3-3 at West Bromwich Albion in their Premier League clash on Saturday. An error by Marcos Alonso led to Callum Robinson opening the scoring for West Brom in the fourth minute and t Read More...

A team of women of Police march past in a programme organised to mark the Constitution day at Nepal Army pavilion in Tundikhel, Kathmandu, on Wednesday, September 19, 2018. Photo: Skanda Gautam/THT

Province 2 threatens to knock Supreme Court door

KATHMANDU, SEPTEMBER 26 Months after the two bills related to adjustment of Nepal Police and Provincial Police were authenticated, provincial governments have not been able to take control of police. As a result, Province 2 government has sent an angry letter to the federal home ministry asking i Read More...

Local levels to resume schools from today in Siraha district

SIRAHA, SEPTEMBER 26 Community schools in Laxmipur Patari Rural Municipality and Mirchaiya Municipality of Siraha, that have remained closed for the past six months are likely to open from tomorrow. Education sections of both the local bodies, by issuing separate notices, decided to open s Read More...

Three persons including campus chief absconding

DHULIKHEL, SEPTEMBER 26 Three persons, including campus chief, have been absconding ever since police issued an arrest warrant against them in Kavre’s Banepa. A fraud charge was filed against three people including Kavre Multiple Campus Chief KJ Baidar in Kavre’s Banepa Municipality, with Read More...

Traffic police expedite monitoring of public vehicles

KATHMANDU, SEPTEMBER 26 Traffic police have expedited inspection and monitoring of public vehicles in Kathmandu valley to ensure that they follow health guidelines and other requirements specified by the government to prevent and control COVID-19. Senior Superintendent of Police Bhim Prasad Dh Read More...

Food, medicines provided to returnees from India

DHANGADI, SEPTEMBER 26 Dhangadi sub-metropolis has been providing free food and health facilities for Nepalis returning from India at border entry point, in Dhangadi. Deputy Mayor Sushila Mishra Bhatta of the sub-metropolis said food and water were being offered to the returnees ever since the Read More...