Nepse at new high of 1,442 points

Nepal Stock Exchange (Nepse) index climbed up 32.24 points this week to close at record high of 1,441.67 points on Thursday -- the last trading day of the week.

The stock market rally continued this week as listed companies prepare to publish their financial results for the third quarter.

The benchmark index is on a record-setting spree despite the capital market regulator -- Securities Board of Nepal (Sebon) - advising investors to be cautious while making investments in the bullish market. Sebon had even said that the stock market rise could not be justified in the current macroeconomic situation of the country.

However, observers say that the stock market would not stop its upward movement until there is excess liquidity in the banking system.
"Earlier when the regulator used to express its concern, the market would react immediately. It seems that the investors have ignored the message of the Sebon for the first time," Anjan Raj Poudyal, former president of Stock Brokers Association of Nepal (Sebon), told Republica.

"As long as the bank rates stay low, investors will continue to put their money into the market.”

The third quarter reporting season for listed companies has also made impact on the stock market. Though only few companies have published their results for the third quarter, investors are hopeful that companies, particularly bank and financial institutions, will fare better in the third quarter that signals how the company will perform in the current fiscal year.

Like in the previous weeks, the Insurance group led the winning side, logging gains of 149.11 points to close at 6,353.93 points. Hotels and Banking groups followed suit as their sub-indices rose 75.86 points and 44.22 points, respectively, to end the week at 1,912.32 points and 1,368.48 points. Manufacturing and Processing group also jumped 56.09 points to settle at 2,249.57 points. Finance and Development Bank grops also went up 6.53 points and 15.03 points, respectively, to end the week's trading at 724.48 points and 1,409.73 points.

The sub-indices of Hydropower and 'Others' groups, however, went down by 16.61 points and 12.92 points, respectively, to finish at 2,270.09 points and 769.51 points. Trading sub-index remained unchanged at 201.38 points.

A total of 7.43 million units of shares of 145 companies worth Rs 4.37 billion were traded in the market this week through 18,319 transactions.

source:republica, 22 april 2016
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