The stock market hit its five-year high of 771.2 points on Monday, posting a single-day gain of 37.95 points. The figure was not seen since November 19, 2008, when the benchmark index had reached as high as 776.58 points.
The Nepal Stock Exchange (Nepse) had to impose circuit breaker and the trading was halted mid-way after the index rose more than 5 percent. Nepse said the growth was recorded in just 47 minutes after the trading started on Monday. The first circuit breaker was imposed in just 21 minutes after the market grew by 3 percent.
With rising share prices, the overall market capitalisation also increased by increased by Rs 38.53 billion to reach Rs 782.67 billion. The market has been bullish ever since the results of the Constituent Assembly came out and the benchmark index has gained more than 200 points since then.
Experts and stockbrokers attributed the rise in the Nepse index mainly to the Nepal Rastra Bank’s (NRB) initiation to implement Basel-III norms for commercial banks. “The rumours that the new bank rules would require bank to increase capital, which banks usually do through bonus share issuance, have encouraged investors to purchase more stocks,” said stock analyst Rabindra Bhattarai.
Stockbrokers predicted that the market would rise further as it is being supported by large transaction volumes. “The transaction volume is expected to sustain the market growth,” said Anjan Raj Paudel of Thrive Brokerage House. On Monday, the market saw transactions worth of Rs 331.45 million from the trading of 673,123 shares.
Besides the new bank rules, increased liquidity in the banking system, post-election political situation and decrease in interest rates in deposits have also contributed to the rise in the Nepse index. Paudel said regular investors were also switching companies frequently. “There is growing trend of buying shares immediately after booking profits,” he said.
On Monday, seven trading groups—banking, hotels, development banks, hydropower, finance, insurance and others—posted gains in their sub-indices. Except for finance companies, all the groups posted double-digit gains. Commercial banks led the gainers side registering 51.25-point growth. With a turnover of Rs 46.30 million, Nepal Bangladesh Bank topped in terms of transaction worth. Nepal Bank and NIC Asia Bank followed.
source: the kathmandu post,17 Dec 2013
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The Nepal Stock Exchange (Nepse) had to impose circuit breaker and the trading was halted mid-way after the index rose more than 5 percent. Nepse said the growth was recorded in just 47 minutes after the trading started on Monday. The first circuit breaker was imposed in just 21 minutes after the market grew by 3 percent.
With rising share prices, the overall market capitalisation also increased by increased by Rs 38.53 billion to reach Rs 782.67 billion. The market has been bullish ever since the results of the Constituent Assembly came out and the benchmark index has gained more than 200 points since then.
Experts and stockbrokers attributed the rise in the Nepse index mainly to the Nepal Rastra Bank’s (NRB) initiation to implement Basel-III norms for commercial banks. “The rumours that the new bank rules would require bank to increase capital, which banks usually do through bonus share issuance, have encouraged investors to purchase more stocks,” said stock analyst Rabindra Bhattarai.
Stockbrokers predicted that the market would rise further as it is being supported by large transaction volumes. “The transaction volume is expected to sustain the market growth,” said Anjan Raj Paudel of Thrive Brokerage House. On Monday, the market saw transactions worth of Rs 331.45 million from the trading of 673,123 shares.
Besides the new bank rules, increased liquidity in the banking system, post-election political situation and decrease in interest rates in deposits have also contributed to the rise in the Nepse index. Paudel said regular investors were also switching companies frequently. “There is growing trend of buying shares immediately after booking profits,” he said.
On Monday, seven trading groups—banking, hotels, development banks, hydropower, finance, insurance and others—posted gains in their sub-indices. Except for finance companies, all the groups posted double-digit gains. Commercial banks led the gainers side registering 51.25-point growth. With a turnover of Rs 46.30 million, Nepal Bangladesh Bank topped in terms of transaction worth. Nepal Bank and NIC Asia Bank followed.
source: the kathmandu post,17 Dec 2013
LINK
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