The domestic stock index rebounded strongly today, recuperating the
loss of over five per cent suffered in the previous trading day, as
share prices of banks, insurers and hydropower companies went up.
The benchmark index, which opened at 875.56 points, jumped 44.5 points, or 5.08 per cent, to close at 920.06 points, as all sub-indices ended the day in the green. This is the first time the Nepal Stock Exchange (Nepse) index had booked a gain in the last six trading days.
“The market rebounded today as fears of market crash were ruled out by Economic Advisor to Prime Minister Chiranjivi Nepal and other senior officials of the Securities Board of Nepal,” Stockbroker Anjan Poudel said.
On Sunday, the stock index had dropped by over five per cent as retail investors started dumping shares assuming the market had already reached its peak of close to 1,100 points and corrections would start taking place, which would ultimately cause shares prices to take a dip.
But others said such arguments did not sound logical, as this is the time when listed companies declare dividends, and investors should be purchasing shares to book instant profits.
“It appears this sentiment overruled other arguments, which caused the index to jump today,” Poudel said.
Investors seemed upbeat today from the time the market opened at 12:00 noon. As a result, the benchmark index made a steady climb upwards, without recording any jerks. By the end of the day, 1.03 million units of shares worth Rs 486.79 million exchanged hands.
The biggest gainer today was Prime Life Insurance Company, whose stock price surged 10 per cent to close at Rs 924. The share price of Nepal Bank Limited also soared by 10 per cent to end the day at Rs 407. Among others, stock price of Surya Life Insurance Company jumped by 9.98 per cent to Rs 606, while share prices of Citizens Bank International and Sewa Bikas Bank booked gains of 9.92 per cent each to close at Rs 521 and Rs 410, respectively.
“Companies of the financial sector are performing well these days because many of them are declaring handsome dividends to their shareholders,” Poudel said.
As a result, shares of major banks and insurance companies went up. Share price of Nabil Bank, for instance, jumped by Rs 135 to close at Rs 2,365. Share price of Standard Chartered Bank Nepal, on the other hand, soared by Rs 179 to Rs 2,299 by the end of the day. Shares of other major players like Nepal Investment Bank, Himalayan Bank and Everest Bank also booked profit today.
Among insurance companies, share price of Nepal Life Insurance Company went up by Rs 122 to Rs 3,702, while that of National Life Insurance Company soared by Rs 190 to Rs 2,150. However, stock price of Life Insurance Company went up by a moderate Rs 12 to end the day at Rs 3,162.
Among hydro companies, share price of Chilime Hydropower Company surged by Rs 203 to Rs 2,274. Other hydro companies booked profit in the range of Rs 12 to Rs 30.
source: the himalayan times,9 sept 2014
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The benchmark index, which opened at 875.56 points, jumped 44.5 points, or 5.08 per cent, to close at 920.06 points, as all sub-indices ended the day in the green. This is the first time the Nepal Stock Exchange (Nepse) index had booked a gain in the last six trading days.
“The market rebounded today as fears of market crash were ruled out by Economic Advisor to Prime Minister Chiranjivi Nepal and other senior officials of the Securities Board of Nepal,” Stockbroker Anjan Poudel said.
On Sunday, the stock index had dropped by over five per cent as retail investors started dumping shares assuming the market had already reached its peak of close to 1,100 points and corrections would start taking place, which would ultimately cause shares prices to take a dip.
But others said such arguments did not sound logical, as this is the time when listed companies declare dividends, and investors should be purchasing shares to book instant profits.
“It appears this sentiment overruled other arguments, which caused the index to jump today,” Poudel said.
Investors seemed upbeat today from the time the market opened at 12:00 noon. As a result, the benchmark index made a steady climb upwards, without recording any jerks. By the end of the day, 1.03 million units of shares worth Rs 486.79 million exchanged hands.
The biggest gainer today was Prime Life Insurance Company, whose stock price surged 10 per cent to close at Rs 924. The share price of Nepal Bank Limited also soared by 10 per cent to end the day at Rs 407. Among others, stock price of Surya Life Insurance Company jumped by 9.98 per cent to Rs 606, while share prices of Citizens Bank International and Sewa Bikas Bank booked gains of 9.92 per cent each to close at Rs 521 and Rs 410, respectively.
“Companies of the financial sector are performing well these days because many of them are declaring handsome dividends to their shareholders,” Poudel said.
As a result, shares of major banks and insurance companies went up. Share price of Nabil Bank, for instance, jumped by Rs 135 to close at Rs 2,365. Share price of Standard Chartered Bank Nepal, on the other hand, soared by Rs 179 to Rs 2,299 by the end of the day. Shares of other major players like Nepal Investment Bank, Himalayan Bank and Everest Bank also booked profit today.
Among insurance companies, share price of Nepal Life Insurance Company went up by Rs 122 to Rs 3,702, while that of National Life Insurance Company soared by Rs 190 to Rs 2,150. However, stock price of Life Insurance Company went up by a moderate Rs 12 to end the day at Rs 3,162.
Among hydro companies, share price of Chilime Hydropower Company surged by Rs 203 to Rs 2,274. Other hydro companies booked profit in the range of Rs 12 to Rs 30.
source: the himalayan times,9 sept 2014
LINK
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