The stock market continued its winning run on this week as well even though the market opened for trading for three days only. While the benchmark index went up on the first trading day, it went into correction mode in the last two trading days.
The stock market is taking an upward movement in recent weeks to set new records almost every day.
While many analysts say that the market growth is fuelled by speculations, investors seemed to have been buoyed by the recent improvement in political climate as well as the impressive earning posted by bank and financial institutions in the second quarter. Investors are getting cheap funds to invest in securities, thanks to liquidity surplus in the banking system and falling interest rates.
Hydropower group was the biggest gainer of the week as its sub-index climbed 106.79 points to close at 2,319.73 points. Insurance group also ended 52.04 points higher at 5,567.66 points. Sub-index of 'Others' group also went up 4.7 points to close at 821.2 points. Banking and Finance groups also inched up 0.25 point and 0.1 point, respectively, to wrap up the week's trading at 1,150.55 points and 603.17 points.
However, Development Bank and Hotels groups shed 32.94 points and 48.35 points, respectively, to end at 1,261.6 points and 1,749.94 points. The sub-indices of Manufacturing and Processing and 'Trading' groups remained unchanged at 1,950.88 points and 201.38 points, respectively.
A total of 3.32 million units of shares of 130 companies worth Rs 1.9 billion were traded in the market this week through 10,107 transactions. Nepal Bank Ltd topped the list of companies in terms of turnover (Rs 91.32 million), while National Hydropower Company Ltd (NHCL) remained at the top in terms of number of shares traded (368,000). Likewise, Rural Microfinance Development Center led the table of companies in terms of number of transactions (544).
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