Weekly share update : Rumour drives Nepse to new high
Kathmandu, July 21:
The bullish trend at Nepal Stock Exchange (Nepse) continued for yet another week despite repeated warnings from the regulatory authority of unjustified rise in the share prices.
The market continued to be overheated due to ‘rumour-driven trend’ amid soaring speculative buying and investors’ expectations that the economy will gain momentum.
The Nepse index posted a sound double-digit growth of 22.52 poi-nts, as the country’s sole secondary market escalated to 679.99 points. The market has been overheated with a notable hike in rush of gullible investors for the last two months.
The share trading in the secondary market opened at 657.47 points on Sunday and continued to climb up setting new records each day for the first two days. It reached an all-time high of 696.68 points on Tuesday, but it dropped to 677.98 points on Wednesday. The growth is supported mainly by gains in share prices of commercial banks, insurance companies and hydropower firms.
The weekly turnover also increased this week to Rs 393.5 million with 506,943 unit shares having been traded through 2,999 transactions, against the last week’s figure of Rs 297.8 million through the trading of 914,428 shares. Out of the total 68 listed companies for share trading, 58 companies saw their transactions this week.
The group wise share trading analysis shows that all major groups including commercial banks, hydropower, and insurance groups each registered an impressive growth this week.
The commercial banks group, which is the largest scrip by volume and aggressive performer, continued with a significant growth of 20.41 points. The group closed hig-her at 768.89 points fr-om 748.48 points on Sunday. The group had also registered a sound double-digit growth last week. Likewise, the insurance group, too, managed a double-digit growth of 27.08 points. The group’s trading that opened at 605.05 points on Sunday went up to 632.13 points on the closing day.
Among the gainers, the hydropower group turned out to be the aggressive performer this week with 104.29 points rise.