The domestic stock market index sailed past the 950-point mark today to close at over a 68-month high, as shares of insurance companies booked heavy profits.
The benchmark index, which opened at 943.18 points today, jumped 10.78 points, or 1.14 per cent, to end the day at 956.60 points. The Nepal Stock Exchange (Nepse) index had last scaled to this height on October 13, 2008, when the market had closed at 957.33 points.
“Today’s jump came on the back of hefty gains made by insurance stocks. Along with that, moderate profit booked by bank and hydro stocks also lent support to the benchmark index to surge past the 950-point mark,” Stock Brokers’ Association of Nepal President Narendra Raj Sijapati said.
Investors’ interest has lately shifted from stocks of commercial banks to those of insurers due to higher yields extended by insurance shares. For instance, Nepal Life Insurance Company (NLIC), in May, gave away 70 per cent bonus shares and 28.5 per cent cash dividend from its profit of last fiscal.
“Such returns cannot be expected from commercial banks,” Sijapati said. “Also, there are talks of upward revision in minimum capital requirement for insurance companies, which have propelled investors to retain insurance shares, thereby reducing their supply in the market. This has also contributed to the price hike.”
Share prices of most insurance companies went up today with NLIC adding Rs 282 to its stock value to close at Rs 4,182. Similarly, share price of Life Insurance Corporation (Nepal) surged by Rs 230 to Rs 4,080, while National Life Insurance Company added Rs 192 to its share value to end at Rs 2,399.
Among others, share price of Everest Insurance jumped by Rs 77 to Rs 855, while that of Sagarmatha Insurance increased by Rs 40 to Rs 1,220.
Because of profit booked by these insurance companies, insurance sub-index surged by 248.45 points to 4177.26 points in the day.
Today’s top gainers were Malika Bikash Bank and Prudential Insurance Company, whose shares prices surged by 10 per cent each to close at Rs 209 and Rs 528. Similarly, share price of Chhimek Laghubitta Bikas Bank booked a gain of 9.98 per cent to end the day at Rs 1,278, while stock price of Western Development Bank went up by 9.90 per cent to close at Rs 211.
Market capitalisation topped Rs 975.95 billion today.
source: the himalayan times,1 july 2014
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The benchmark index, which opened at 943.18 points today, jumped 10.78 points, or 1.14 per cent, to end the day at 956.60 points. The Nepal Stock Exchange (Nepse) index had last scaled to this height on October 13, 2008, when the market had closed at 957.33 points.
“Today’s jump came on the back of hefty gains made by insurance stocks. Along with that, moderate profit booked by bank and hydro stocks also lent support to the benchmark index to surge past the 950-point mark,” Stock Brokers’ Association of Nepal President Narendra Raj Sijapati said.
Investors’ interest has lately shifted from stocks of commercial banks to those of insurers due to higher yields extended by insurance shares. For instance, Nepal Life Insurance Company (NLIC), in May, gave away 70 per cent bonus shares and 28.5 per cent cash dividend from its profit of last fiscal.
“Such returns cannot be expected from commercial banks,” Sijapati said. “Also, there are talks of upward revision in minimum capital requirement for insurance companies, which have propelled investors to retain insurance shares, thereby reducing their supply in the market. This has also contributed to the price hike.”
Share prices of most insurance companies went up today with NLIC adding Rs 282 to its stock value to close at Rs 4,182. Similarly, share price of Life Insurance Corporation (Nepal) surged by Rs 230 to Rs 4,080, while National Life Insurance Company added Rs 192 to its share value to end at Rs 2,399.
Among others, share price of Everest Insurance jumped by Rs 77 to Rs 855, while that of Sagarmatha Insurance increased by Rs 40 to Rs 1,220.
Because of profit booked by these insurance companies, insurance sub-index surged by 248.45 points to 4177.26 points in the day.
Today’s top gainers were Malika Bikash Bank and Prudential Insurance Company, whose shares prices surged by 10 per cent each to close at Rs 209 and Rs 528. Similarly, share price of Chhimek Laghubitta Bikas Bank booked a gain of 9.98 per cent to end the day at Rs 1,278, while stock price of Western Development Bank went up by 9.90 per cent to close at Rs 211.
Market capitalisation topped Rs 975.95 billion today.
source: the himalayan times,1 july 2014
LINK
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