The Nepal Stock Exchange (Nepse) has been seeing steady growth in daily turnover over the past six months.
Average daily turnover at the country´s only bourse has been hovering above Rs 250 million for the past six months. The daily turnover fell below the mark only three times after the Constituent Assembly (CA) polls - on November 21 last year, January 26 and January 27 - until Sunday.
During August to November 19 last year, daily turnover crossed the Rs 250-million mark only five times.
Stock brokers say steady rise in daily turnover at Nepse suggests that the market is heading toward stability. Narendra Raj Sijapati, president of Stock Brokers Association of Nepal, said daily transaction volume at the stock market in recent months has showed that the Nepal´s secondary market is becoming mature. “The higher the transaction volume is, the lower will be the room for the market manipulators,” he said, adding that the securities market was moving at its own pace.
Anjan Raj Poudel, proprietor of Thrive Brokerage, echoed Sijapati and said steady rise in daily turnover was an encouraging sign for the secondary market. “Earlier, daily turnover used to increase when the market is on a bullish trend and fall when the market is on a bear run,” he said, adding: “Now, daily turnover isn´t going down significantly despite corrections in the market in post-election trading.”
After the CA polls held on November 19, the buoyant investors poured their money into the secondary market which propelled the daily turnover to all time high of Rs 810.9 million on December 19 last year. “Though there has been some corrections, the transaction volume has not gone down substantially,” Poudel said. “The number of listed companies, investors and market size is increasing.”
Stock investors also cashed in on the excess liquidity in the banking system by securing margin low at interest rate of as low as 10 percent. “The excess cash in the banking system also came into the secondary market,” said Sijapati.
Stock Analyst Rabindra Bhattarai told Republica that steady daily turnover figures mean that the confidence of the investors is not going to wane anytime soon. “The day-to-day turnover helps to measure the confidence of investors. It shows that the demand for shares has not slowed down.”
Meanwhile, Nepse index dropped 6.41 points on Monday to close at 769.51 points. The index had shed 5.54 points on Sunday-the first trading day of the week.
source: republica,3 Feb 2014
LINK
Average daily turnover at the country´s only bourse has been hovering above Rs 250 million for the past six months. The daily turnover fell below the mark only three times after the Constituent Assembly (CA) polls - on November 21 last year, January 26 and January 27 - until Sunday.
During August to November 19 last year, daily turnover crossed the Rs 250-million mark only five times.
Stock brokers say steady rise in daily turnover at Nepse suggests that the market is heading toward stability. Narendra Raj Sijapati, president of Stock Brokers Association of Nepal, said daily transaction volume at the stock market in recent months has showed that the Nepal´s secondary market is becoming mature. “The higher the transaction volume is, the lower will be the room for the market manipulators,” he said, adding that the securities market was moving at its own pace.
Anjan Raj Poudel, proprietor of Thrive Brokerage, echoed Sijapati and said steady rise in daily turnover was an encouraging sign for the secondary market. “Earlier, daily turnover used to increase when the market is on a bullish trend and fall when the market is on a bear run,” he said, adding: “Now, daily turnover isn´t going down significantly despite corrections in the market in post-election trading.”
After the CA polls held on November 19, the buoyant investors poured their money into the secondary market which propelled the daily turnover to all time high of Rs 810.9 million on December 19 last year. “Though there has been some corrections, the transaction volume has not gone down substantially,” Poudel said. “The number of listed companies, investors and market size is increasing.”
Stock investors also cashed in on the excess liquidity in the banking system by securing margin low at interest rate of as low as 10 percent. “The excess cash in the banking system also came into the secondary market,” said Sijapati.
Stock Analyst Rabindra Bhattarai told Republica that steady daily turnover figures mean that the confidence of the investors is not going to wane anytime soon. “The day-to-day turnover helps to measure the confidence of investors. It shows that the demand for shares has not slowed down.”
Meanwhile, Nepse index dropped 6.41 points on Monday to close at 769.51 points. The index had shed 5.54 points on Sunday-the first trading day of the week.
source: republica,3 Feb 2014
LINK
Comments
Post a Comment