The Nepse soared 33.88 points on Thursday reflecting a buoyant public mood on the first day of trading after the Constituent Assembly (CA) election. The index made an impressive gain of 5.64 percent within an hour as investors expected pro-capital market political parties to win a larger number of CA seats, said stock analysts.
As the capital market rose over 5 percent, the Nepal Stock Exchange applied a circuit breaker at midday to halt transactions for the rest of the day. The market closed at 634.3 points.
Trading was first halted for 15 minutes at 12:12 pm when the index surged 3 percent. Again, a 30-minute halt was imposed at 12:29 pm following a 4 percent rise in the index. Eventually, share transactions were halted for the rest of the day at 1:12 pm after the Nepse surged more than 5 percent.
Stockbrokers attributed the growth in the secondary market to the favourable change seen in the political arena as per the expectations of investors along with the announcement of the CA election results.
Apart from multiple causes including a drop in bank interest rates for investing in shares and positive financial report published by a number of companies, the favourable development in the political area has been considered crucial for the impressive gain in the Nepse, said stockbrokers.
“With the possibility of a pro-capital market political alliance leading the CA polls result, there is an increase in investor confidence that the market will go on an upward path. This has encouraged investors to buy a large number of shares,” said Nabaraj Pokharel of Opal Securities and Investment.
According to him, investors were keen to buy shares despite the press notes released by the Maoists expressing their discontent at the vote counting. The Nepse had followed a consistent downhill path from an all-time high of 1100 points after the Maoist party entered government.
Pralhad Kumar Oli, managing director of Pragyan Securities, also said that the market exhibited positive vibes due to the showing in the CA election. “Investors hope that the democratic alliance’s forming the government will boost the capital market,” he said.
The capital market had taken an upward path even before CA polls, a trend analysts attributed to swelling investor confidence due to growing certainty that the election would be held as scheduled on Nov 19.
According to stock analyst Rabindra Bhattarai, a similar trend had been seen in the capital market during past polls. “The Nepse had witnessed a similar growth during the elections in 1999 and 2008.”
Transactions worth Rs 102.6 million from the trading of the shares of 55 companies were seen before the market closed on Thursday. Market capitalisation reached Rs 35 billion.
Almost all the trading groups saw gains in their indices. Of the six trading groups whose shares were traded, four saw double-digit growth. Insurance Companies were the biggest winners with a rise of 78.36 points. They were followed by Hydropower Companies, Others and Banking groups.
Among the highest gainers, three companies, the Bank of Kathmandu, Nepal Life Insurance and Nepal Bangladesh Bank, gained 10 points each.
The Nepse started the fiscal year on a high note, recording an impressive growth in the first four months and crossing the 600-point mark for the first time in four years.
source: the kathmandu post,21 Nov 2013
As the capital market rose over 5 percent, the Nepal Stock Exchange applied a circuit breaker at midday to halt transactions for the rest of the day. The market closed at 634.3 points.
Trading was first halted for 15 minutes at 12:12 pm when the index surged 3 percent. Again, a 30-minute halt was imposed at 12:29 pm following a 4 percent rise in the index. Eventually, share transactions were halted for the rest of the day at 1:12 pm after the Nepse surged more than 5 percent.
Stockbrokers attributed the growth in the secondary market to the favourable change seen in the political arena as per the expectations of investors along with the announcement of the CA election results.
Apart from multiple causes including a drop in bank interest rates for investing in shares and positive financial report published by a number of companies, the favourable development in the political area has been considered crucial for the impressive gain in the Nepse, said stockbrokers.
“With the possibility of a pro-capital market political alliance leading the CA polls result, there is an increase in investor confidence that the market will go on an upward path. This has encouraged investors to buy a large number of shares,” said Nabaraj Pokharel of Opal Securities and Investment.
According to him, investors were keen to buy shares despite the press notes released by the Maoists expressing their discontent at the vote counting. The Nepse had followed a consistent downhill path from an all-time high of 1100 points after the Maoist party entered government.
Pralhad Kumar Oli, managing director of Pragyan Securities, also said that the market exhibited positive vibes due to the showing in the CA election. “Investors hope that the democratic alliance’s forming the government will boost the capital market,” he said.
The capital market had taken an upward path even before CA polls, a trend analysts attributed to swelling investor confidence due to growing certainty that the election would be held as scheduled on Nov 19.
According to stock analyst Rabindra Bhattarai, a similar trend had been seen in the capital market during past polls. “The Nepse had witnessed a similar growth during the elections in 1999 and 2008.”
Transactions worth Rs 102.6 million from the trading of the shares of 55 companies were seen before the market closed on Thursday. Market capitalisation reached Rs 35 billion.
Almost all the trading groups saw gains in their indices. Of the six trading groups whose shares were traded, four saw double-digit growth. Insurance Companies were the biggest winners with a rise of 78.36 points. They were followed by Hydropower Companies, Others and Banking groups.
Among the highest gainers, three companies, the Bank of Kathmandu, Nepal Life Insurance and Nepal Bangladesh Bank, gained 10 points each.
The Nepse started the fiscal year on a high note, recording an impressive growth in the first four months and crossing the 600-point mark for the first time in four years.
source: the kathmandu post,21 Nov 2013
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