Nepal Stock Exchange (Nepse) index posted gain for a third straight week
as the benchmark index gained 13.88 points to close at 959.24 points on
Thursday -- the last trading day of the week.
Analysts say gain in Nepse index despite tumultuous political situation shows that political development was less likely to affect the market. "While many investors say there is no alternative for the political parties to come together and draft constitution, some do not bother about political developments at all," Priya Raj Regmi, president of Stock Brokers Association of Nepal (SBAN), said. He also said that falling bank interest rates and expectation of investors that banks and financial institutions (BFIs) will come up with better financial results in the second quarter, among other factors, have also driven the market.
BFIs are currently publishing their unaudited financial results of second quarter of the current fiscal year. Bank interest rate is also coming down as the banking system is still grappling with liquidity surplus.
“Once the working procedure to issue loans against dematerialized shares, which has already been prepared, comes into effect, more investors will get loans from BFIs. This will give further impetus to the market,” he added.
Except Insurance, all trading groups posted gains this week. Insurance group, which had been observing massive surge over the past few weeks, shed 15.83 points to close at 4,142.27 points. Hotels group was the biggest gainer this week as its sub-index climbed up by 54.11 points to settle at 2,103.28 points. Hydropower, Banking and Development Bank sub-indices were up 31.03 points, 18.39 points and 14.18 points, respectively, to settle at 2,314.59 points, 840.77 points and 754.7 points.
The sub-index of Manufacturing and Processing also rose 8.2 points to close at 1,371.92 points. Likewise, Finance sub-index went up 3.83 points to close at 512.37 points. Trading and ´Others´ remained unchanged at 183.05 points and 746.02 points, respectively.
A total of 3.77 million units of shares of 164 companies worth Rs 1.89 billion were traded in the market through 9,965 transactions this week.
source:recpublica, 24 jan 2015
LINK
Analysts say gain in Nepse index despite tumultuous political situation shows that political development was less likely to affect the market. "While many investors say there is no alternative for the political parties to come together and draft constitution, some do not bother about political developments at all," Priya Raj Regmi, president of Stock Brokers Association of Nepal (SBAN), said. He also said that falling bank interest rates and expectation of investors that banks and financial institutions (BFIs) will come up with better financial results in the second quarter, among other factors, have also driven the market.
BFIs are currently publishing their unaudited financial results of second quarter of the current fiscal year. Bank interest rate is also coming down as the banking system is still grappling with liquidity surplus.
“Once the working procedure to issue loans against dematerialized shares, which has already been prepared, comes into effect, more investors will get loans from BFIs. This will give further impetus to the market,” he added.
Except Insurance, all trading groups posted gains this week. Insurance group, which had been observing massive surge over the past few weeks, shed 15.83 points to close at 4,142.27 points. Hotels group was the biggest gainer this week as its sub-index climbed up by 54.11 points to settle at 2,103.28 points. Hydropower, Banking and Development Bank sub-indices were up 31.03 points, 18.39 points and 14.18 points, respectively, to settle at 2,314.59 points, 840.77 points and 754.7 points.
The sub-index of Manufacturing and Processing also rose 8.2 points to close at 1,371.92 points. Likewise, Finance sub-index went up 3.83 points to close at 512.37 points. Trading and ´Others´ remained unchanged at 183.05 points and 746.02 points, respectively.
A total of 3.77 million units of shares of 164 companies worth Rs 1.89 billion were traded in the market through 9,965 transactions this week.
source:recpublica, 24 jan 2015
LINK
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