The Nepal Stock Exchange (Nepse) crossed the 1,000-point mark for the first time in six years on Tuesday. The country’s sole share market sizzled with the Nepse index making a 19.48 point leap backed by a turnover of Rs 828.56 million.
Former Nepse general manager Shankar Man Singh attributed the jump in the secondary market to a rise in the number of investors and stockbrokers. “The number of investors and stockbrokers has increased which led to a growth in the market,” he said. According to Singh, the bullish trend at Nepse is also an indication of the peak stage of a cycle that normally comes every six to seven years.
Meanwhile, Nepal Stockbrokers’ Association President Narendra Raj Sijapati said that the secondary market would not fall below the 1,000 mark in the coming days. According to Sijapati, the market has been seeing demand for shares even from individual investors.
“During this time near the closure of the fiscal year when institutional investors mostly sell their shares, the market is going up. This shows that the market could rise with the beginning of the fiscal year when they again start investing in shares,” he said.
Along with the surge in the Nepse index, the market has also seen a rise in daily transactions. On Tuesday, Nepse recorded transactions worth Rs 828.56 million with promoter shares of Nabil Bank accounting for Rs 30 million.
There are an estimated 700,000 individual investors in the stock market. Two mutual funds, Nabil Invest and Siddhartha Capital, and a number of banks and finance companies are also involved in share trading.
source: the kathmandu post, 9 july 2014
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Former Nepse general manager Shankar Man Singh attributed the jump in the secondary market to a rise in the number of investors and stockbrokers. “The number of investors and stockbrokers has increased which led to a growth in the market,” he said. According to Singh, the bullish trend at Nepse is also an indication of the peak stage of a cycle that normally comes every six to seven years.
Meanwhile, Nepal Stockbrokers’ Association President Narendra Raj Sijapati said that the secondary market would not fall below the 1,000 mark in the coming days. According to Sijapati, the market has been seeing demand for shares even from individual investors.
“During this time near the closure of the fiscal year when institutional investors mostly sell their shares, the market is going up. This shows that the market could rise with the beginning of the fiscal year when they again start investing in shares,” he said.
Along with the surge in the Nepse index, the market has also seen a rise in daily transactions. On Tuesday, Nepse recorded transactions worth Rs 828.56 million with promoter shares of Nabil Bank accounting for Rs 30 million.
There are an estimated 700,000 individual investors in the stock market. Two mutual funds, Nabil Invest and Siddhartha Capital, and a number of banks and finance companies are also involved in share trading.
source: the kathmandu post, 9 july 2014
LINK
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