Kathmandu, August 12 :

After the biggest fall last week, stock trading this week made a u-turn with Nepal Stock Exchange (Nepse) recording over a 27 points growth.

Share prices of commercial banks improved well after Nepal Rastra Bank (NRB) amended a provision in the recently announced Monetary Policy regarding paid-up capital requirement.

According to the new provision, commercial banks have to distribute dividend and issue bonus shares to their shareholders, which the earlier provision had relaxed in favour of the banks.

The stock market had crashed following confusions created by the capital adjustment provision for commercial banks, which led the Nepse index to plummet by 31 points last week. However, NRB amended the provision on paid-up capital requirement to avert further damage to the Nepse.

As a result, weekly trading that began at 363.56 points on Sunday closed at 390.86 points on Tuesday.

Nepse recovered with a growth of 19.58 points on Sunday, which further extended by 7.72 points when the market closed on Tuesday.

According to Nepse, a total of 90,008 units of shares worth over Rs 49.7 million were traded through 772 transactions this week, against last week’s trading of 191,760 shares from 1,246 transactions at Rs 90.3 million. Of the listed 46 companies for share trading, 33 companies saw transactions this week.

The weekly trading report shows that the commercial banks group bounced back with a huge growth of over 40 points after last week’s terrific loss of over 49 points.

The group’s recovery was also an instrumental in the overall growth of stock trading. The group began trading at 399.99 points on Sunday and closed at 440.82 points on the closing day.

Likewise, the insurance and the development banks groups also recovered this week. The insurance group registered a marginal growth, while the development banks group gained 2.09 points during the week. Both the groups had lost ground last week.

The weekly trading of the insurance group opened at 388.65 points and closed up at 389.80 points, while the development banks group began at 287.98 points on Sunday and stood at 290.07 points on the closing day.

The other group made a significant gain of about 21 points, as its index rallied from 407.03 points on Sunday to 427.85 points on the closing day. The group had registered 4.15 points growth last week.