Weekly Share Update : Bullish Nepse index rallies above 600-mark

Kathmandu, July 7:

Ongoing bullish trend at the Nepal Stock Exchange (Nepse) continued for yet another week, as its index continued to scale new highs each day throughout the week due to soaring share prices of the commercial banks.

The index posted a sound double-digit growth of 19.82 points to push the country’s sole secondary market to a new high of 613.47 points this week. Stock market began its trading at 593.65 points on Sunday and set a new record on Tuesday by crossing 600-point mark for the first time since its inception. The growth is supported mainly by gains in share prices of commercial banks, finance companies and hydropower companies.

Although analysts term the current growth ‘unjustifiable’ because its based on rumours, the share market is on bullish mood for the last one-and-a-half month amid soaring speculative buying and investors’ expectations that the economy will gain momentum.

The weekly turnover also increased significantly this week to Rs 497.4 million with 1,453,396 unit shares having been traded through 2,326 transactions, against the last week’s figure of Rs 257 million through the trading of 624,893 shares. Out of the total 87 listed companies for share trading, 68 companies saw their transactions this week.

The trading took place for five days under a regular lot. Stock trading registered a continuous growth over the week with its index climbing to 598.52 points on the second day, 602.87 points on the third day and 611.08 points on the fourth day before closing at 613.47 points on the last day.

The group wise share trading analysis shows that all major groups including commercial banks, the other and insurance groups each registered a healthy growth.

The commercial banks group, which is the largest scrip by volume and aggressive performer, continued to climb up with an impressive growth of 26.68 points. The group closed higher at 681.89 points from the opening 655.21 points. Likewise, the others group also posted a growth of 5.69 points, as it’s trading soared to 818.12 points from the opening 812.43 points.

Among the gainers, the insurance group, too, managed double-digit growth of 12.93 points. The group’s trading that opened at 579.81 points on Sunday went up to 592.74 points on the closing day.

The manufacturing group’s index registered 4.14 points growth and closed at 346.43 points, while the hydropower companies’ group gained 2.66 points and closed at 836.46 points. Of the two, the manufacturing group began its trading at 342.29 points, while the hydropower group opened at 833.80 points.

The finance and development bank groups rose to 466.83 points and 517.93 poi-nts from the opening 464.99 points and 515.11 points resp-ectively. The trading and hotel groups, meanwhile, remained constant at 155.21 points and 242.55 points, as these groups didn’t have a single transaction this week. National Hydropo-wer topped others in terms of the largest share trading. Its 1,058,770 unit shares exchan-ged hands for Rs 218,550,330 through 410 transactions.

The Nepse floor remained open for four days this week and the shares of Nabil Bank, Nepal Investment Bank, Standard Chartered Bank, Himalayan Bank, Nepal SBI Bank, Nepal Bangladesh Bank, Bank of Kathmandu, NIC Bank, Machhapuchhre Bank, Kumari Bank, Lumbini Bank, NCC Bank, Siddhartha Bank, National Hydropower Co, Chilime Hydropower Co, Shikhar Insurance, Ace Finance and Deprosc Development Bank were traded.