Nepal Stock Exchange (Nepse) witnessed record high single-week transaction, realising Rs 2.10 billion in just four trading days. Stockbrokers said despite an expectation of price correction, the demand for stocks remained high.
As share prices of most of the companies soared, the Nepse index surged by 72.4 points to close at 805.35 points, the highest ever in the last five years.
The benchmark index, which closed at 732.95 on Sunday, saw robust growth on Monday and Wednesday (up 37.95 points and 35.76 points, respectively), prompting the stock market to impose circuit breaker thrice and halt transaction mid-way. On Thursday, the market, however, slid by a marginal 1.31 points.
Stockbrokers attributed the stock market growth to Nepal Rastra Bank’s (NRB) announcement to enforce Basel III banking rules. They said investors were hoping that an introduction of the banking provision would compel banks to increase their capital base, which banks usually do through stock dividend.
“In addition, investors are increasingly taking risk when the market is in bullish trend,” said Satish Kumar Shrestha of Siprabi Securities. He said investors making short-term investment are mainly lured by the surging market and Thursday’s fall was due to profit booking. Despite the fall in index on the final day of the week, the market transaction amounted to Rs 810.85 million, the record high single-day volume from the trading of ordinary shares.
Anjan Raj Paudel of Thrive Brokerage House said the fall on the last trading day could be the result of speculation that the central bank could impose a cap on margin loans. “Besides, market correction is a normal phenomenon following a massive surge in index,” he said.
The brokers, however, said the market would grow further for the next few days. “Despite the fall in the index, the large volume of transaction on Thursday shows the market will grow further,” said Paudel. Shrestha also said the index is likely to go up as a large number of buyers are still eager to purchase shares.
Besides manufacturing, all the trading groups posted gains last week. The hydropower company sub-index surged by a whopping 148 points and insurance companies’ group was up 107.28 points. Commercial banks and ‘others’ were among other gainers. The manufacturing group was stable at 923.65 points.
The sensitive index that measures the performance of blue chip companies was up 19.04 points to close at 201.02 points.
Nepal Bangladesh Bank posted the single highest transaction amount of Rs 218.6 million. It was followed by NIC Asia Bank, Nepal Bank, Kist Bank and Bank of Kathmandu. Kist Bank topped in terms of the number of shares traded (546,716 units).
The overall market transaction rose 34.64 percent to reach Rs 2.10 billion from trading of 5,000,710 shares. Transaction of ‘A’ class companies amounted to more than Rs 1 billion — 37.77 percent of the total market transaction.
source: the kathmandu post,22 Dec 2013
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As share prices of most of the companies soared, the Nepse index surged by 72.4 points to close at 805.35 points, the highest ever in the last five years.
The benchmark index, which closed at 732.95 on Sunday, saw robust growth on Monday and Wednesday (up 37.95 points and 35.76 points, respectively), prompting the stock market to impose circuit breaker thrice and halt transaction mid-way. On Thursday, the market, however, slid by a marginal 1.31 points.
Stockbrokers attributed the stock market growth to Nepal Rastra Bank’s (NRB) announcement to enforce Basel III banking rules. They said investors were hoping that an introduction of the banking provision would compel banks to increase their capital base, which banks usually do through stock dividend.
“In addition, investors are increasingly taking risk when the market is in bullish trend,” said Satish Kumar Shrestha of Siprabi Securities. He said investors making short-term investment are mainly lured by the surging market and Thursday’s fall was due to profit booking. Despite the fall in index on the final day of the week, the market transaction amounted to Rs 810.85 million, the record high single-day volume from the trading of ordinary shares.
Anjan Raj Paudel of Thrive Brokerage House said the fall on the last trading day could be the result of speculation that the central bank could impose a cap on margin loans. “Besides, market correction is a normal phenomenon following a massive surge in index,” he said.
The brokers, however, said the market would grow further for the next few days. “Despite the fall in the index, the large volume of transaction on Thursday shows the market will grow further,” said Paudel. Shrestha also said the index is likely to go up as a large number of buyers are still eager to purchase shares.
Besides manufacturing, all the trading groups posted gains last week. The hydropower company sub-index surged by a whopping 148 points and insurance companies’ group was up 107.28 points. Commercial banks and ‘others’ were among other gainers. The manufacturing group was stable at 923.65 points.
The sensitive index that measures the performance of blue chip companies was up 19.04 points to close at 201.02 points.
Nepal Bangladesh Bank posted the single highest transaction amount of Rs 218.6 million. It was followed by NIC Asia Bank, Nepal Bank, Kist Bank and Bank of Kathmandu. Kist Bank topped in terms of the number of shares traded (546,716 units).
The overall market transaction rose 34.64 percent to reach Rs 2.10 billion from trading of 5,000,710 shares. Transaction of ‘A’ class companies amounted to more than Rs 1 billion — 37.77 percent of the total market transaction.
source: the kathmandu post,22 Dec 2013
LINK
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