Secondary market enters ‘markup phase’

Kathmandu, January 18

With the secondary market’s shift from ‘accumulation phase’ to ‘markup phase’, the Nepal Stock Exchange (Nepse) index surged by eight per cent or 97.12 points past the psychological threshold of 1,300 points after nearly eight months in the trading week between January 12 and 17.

‘Accumulation phase’ occurs after the market has bottomed and the investors and early adopters begin to buy, figuring the worst is over. ‘Markup phase’, on the other hand, occurs when the market has been stable for a while and moves higher.

Prakash Rajhaure, an independent stock analyst, said the share market has entered a bullish trend after the government expressed its commitment to promote the secondary market. “But, this is not the only factor, as the market has completed its ‘accumulation phase’.”

“While the positive statements by the finance minister and chairperson of Securities Board of Nepal recently have boosted investor sentiment, the current market movement is cyclical upsurge,” he explained.

In the review week, sensitive index ascended by 7.04 per cent or 18.61 points to 282.88 points and float index increased by 2.99 per cent or 2.86 points to 92.86 points.

The weekly turnover surged by 57.9 per cent compared to the previous week to Rs 6.67 billion. In the previous week, the market had witnessed transactions worth Rs 4.22 billion. The trading volume also jumped from 14.68 million stocks traded in the previous week to 21.19 million stocks changing hands this time around.

Source: Nepse
Source: Nepse