Kathmandu, January 18

The Nepal Stock Exchange (Nepse) index recorded a fresh high today as the benchmark index surged by 0.19 per cent or 2.31 points to 1,214.31 points. The country’s secondary market has clocked four weekly gains and witnessed continuous bull run since January 6.

Stock market analysts have said that the continuous bull run in the market is largely backed by excess liquidity in the market, positive political cues and simplification in share transaction after the full-fledged implementation of dematerialised trading system in the secondary market.

The Securities Board of Nepal (SEBON) — regulator of the securities market in the country — had implemented full-fledged dematerialised system in share transaction from Sunday. As a result, supply of stock is limited because a large chunk of stocks of the listed companies are yet to be dematerialised.

According to CDS and Clearing Ltd, a total of 303,413,682 shares of 176 listed companies have been dematerialised as of today.

Altogether 176 companies out of the 232 listed companies have acquired membership of the Central Depository System and Clearing Ltd. This means that only 176 companies are eligible for trading till date and a further 56 firms are yet to become members of CDS and Clearing Ltd for admission of their securities for dematerialisation.

The bull run in the stock market today was led by hotels sector. The hotels sub-index increased by 39.88 points or 2.29 per cent to land at 1,782.62 points. Banking, development banks and hydropower witnessed gains today as their sub-indices surged by 0.43 per cent to 1,109.68 points; 0.84 per cent to 1,167.82 points and 0.14 per cent to 2,164.48 points, respectively.

However, insurance, finance, and manufacturing sub-groups ended in the red zone —dipping 0.89 per cent to 5,454.82 points; 0.44 per cent to 583.96 points and 1.44 per cent to 1,816.64 points, respectively.

Meanwhile, others (at 798.88 points) and trading (at 201.38 points) sub-groups remained constant.

In total, 884,255 shares of 87 firms worth Rs 624.04 million changed hands through 2,800 transactions today. The sensitive index rose 0.28 per cent to 261.10 points. Likewise, float index also went up 0.3 per cent to 86.97 points.