Nepse bucks trend to rise 5.75 points

KATHMANDU, JUL 15 -

The Nepal Stock Exchange last week gained 5.75 points to close at 383.48 points on Thursday.

The stability seen in the capital market, unlike previous years when selling pressure at the fiscal year-end dragged down the benchmark index, has cheered stakeholders. Investors generally offload their holding towards the end of the fiscal year to repay bank loans.

The market remained largely firm over last week’s five trading days. The index slightly moved northward on Monday and Tuesday before slipping a bit on following days.

Groups representing commercial banks, others, hydropower companies, insurance companies and development banks gained 5.53, 11.75, 24.12, 8.36 and 0.92 points, respectively. While the losers were hotels (down 1.89 points) and finance companies (down 0.04 points), manufacturing companies and trading firms were

non-movers.

Experts said the market was maintaining resilience in difficult times and that the future ‘might be rosy’. The government’s initiation to boost the market is working and investor confidence has been restored, they said. “Investor confidence, which was at rock-bottom, has been restored by the government’s nine-point decision,” said Anjan Raj Poudyal, president of the Stock Brokers’ Association of Nepal.

The government’s decision to allow banks and financial institutions (BFIs) to extend share purchase loans to investors against the guarantee of stockbrokers has been instrumental in reinforcing investor confidence. “Investors are now waiting for BFIs to move forward and issues such loans,” said Poudyal. “We expect BFIs will start extending such loans from next fiscal year.”

Experst also said starting full-fledged operation of the central depositary system within July, as mentioned in the nine-point decision, will further boost the capital market.

Another positive about the capital market in recent times is the volume of transaction. Last week, the exchange registered a total transaction of Ra 317.62 million — up 4.09 percent compared to Rs 305.13 million of the previous week.

Everest Bank posted the highest individual turnover of Rs 75.38 million, whereas National Hydropower Company topped the chart in terms of the number of shares traded — 151,500 units. Chilime Hydropower Company saw highest number of transactions — 407 times.

 

 


Source: http://www.ekantipur.com/2012/07/15/business/nepse-bucks-trend-to-rise-5.75-points/357182/