The stock market has responded positively to the election of Sushil Koirala, president of Nepali Congress, as the new prime minister, as the Nepal Stock Exchange (Nepse) index crossed 800-point mark today after almost two months.
The benchmark index advanced 19.13 points, 2.44 per cent, to end the day at 803.13 points, after Koirala received overwhelming support to lead the new government. The index had last scaled to this height on December 19.
“Koirala’s election has sent a signal that the country will no longer lurch in political uncertainty. This has boosted the investor confidence,” stockbroker Nanda Kishore Mundada said.
The index started its day at 784 points today and shot up by over four per cent, which propelled Nepse to halt trading twice. Nepse halts trading for 15 minutes and 30 minutes whenever the index rises by three per cent and four per cent, respectively, during intra-day trading.As investors remained bullish, the index even crossed 820-point mark at one point today. “But that gain could not be sustained, as investors started offloading shares to book profit,” Mundada said.
Due to heavy buying and selling of stocks, today’s total share trading amount stood at Rs 400.97 million, and the market capitalization — the total value of all the shares listed on the market — topped Rs 817.66 billion.
At the end of the day, the Lumbini General Insurance emerged as the biggest gainer today, witnessing 10 per cent hike in its share price to end at Rs 385. Close on the heels of the insurer was Clean Energy Development Bank — up 9.77 per cent to Rs 292 — and Life Insurance Company, whose share price gained 9.43 per cent to Rs 2,900.
Today’s market rally was led by insurance and hydropower sectors, with insurance sub-index gaining 76.45 points, or 3.32 per cent, to 2376.17 points; hydropower sub-index was up 76.40 points, or 3.93 per cent, at 2019.61 points. Hotels sub-index, meanwhile, advanced by 54.78 points, or 4.53 per cent, to end the day at 1262.68 points.
“The share prices of insurance companies are rising these days due to talks that the regulator would soon make it mandatory for life insurers to raise paid-up capital to Rs two billion from existing Rs 500 million, while prospects of better returns from hydro companies are lifting hydro share prices,” Mundada said.
“Stock prices of hotels, on the other hand, are on the rise following stellar profits registered by Soaltee Hotel, Taragaon Regency Hotel and Oriental Hotel in the second quarter.”
The performance of stock market has remained stellar since the second CA election on November 19. The benchmark index, which had stood at 600.42 points before the polls, rose to a height of 806.82 points on
December 18. The market has retreated since, as Nepal Rastra Bank warned to closely monitor margin lending of banks and financial institutions so as not to fuel speculation, which could create bubbles.
source:the himalayan times,10 Feb 2014
LINK
The benchmark index advanced 19.13 points, 2.44 per cent, to end the day at 803.13 points, after Koirala received overwhelming support to lead the new government. The index had last scaled to this height on December 19.
“Koirala’s election has sent a signal that the country will no longer lurch in political uncertainty. This has boosted the investor confidence,” stockbroker Nanda Kishore Mundada said.
The index started its day at 784 points today and shot up by over four per cent, which propelled Nepse to halt trading twice. Nepse halts trading for 15 minutes and 30 minutes whenever the index rises by three per cent and four per cent, respectively, during intra-day trading.As investors remained bullish, the index even crossed 820-point mark at one point today. “But that gain could not be sustained, as investors started offloading shares to book profit,” Mundada said.
Due to heavy buying and selling of stocks, today’s total share trading amount stood at Rs 400.97 million, and the market capitalization — the total value of all the shares listed on the market — topped Rs 817.66 billion.
At the end of the day, the Lumbini General Insurance emerged as the biggest gainer today, witnessing 10 per cent hike in its share price to end at Rs 385. Close on the heels of the insurer was Clean Energy Development Bank — up 9.77 per cent to Rs 292 — and Life Insurance Company, whose share price gained 9.43 per cent to Rs 2,900.
Today’s market rally was led by insurance and hydropower sectors, with insurance sub-index gaining 76.45 points, or 3.32 per cent, to 2376.17 points; hydropower sub-index was up 76.40 points, or 3.93 per cent, at 2019.61 points. Hotels sub-index, meanwhile, advanced by 54.78 points, or 4.53 per cent, to end the day at 1262.68 points.
“The share prices of insurance companies are rising these days due to talks that the regulator would soon make it mandatory for life insurers to raise paid-up capital to Rs two billion from existing Rs 500 million, while prospects of better returns from hydro companies are lifting hydro share prices,” Mundada said.
“Stock prices of hotels, on the other hand, are on the rise following stellar profits registered by Soaltee Hotel, Taragaon Regency Hotel and Oriental Hotel in the second quarter.”
The performance of stock market has remained stellar since the second CA election on November 19. The benchmark index, which had stood at 600.42 points before the polls, rose to a height of 806.82 points on
December 18. The market has retreated since, as Nepal Rastra Bank warned to closely monitor margin lending of banks and financial institutions so as not to fuel speculation, which could create bubbles.
source:the himalayan times,10 Feb 2014
LINK
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