The stock market climbed to a record high of 1,214.31 points on Monday -- the second trading day of the week. However, there were minor corrections in the latter trading days.
Stock market observers say that optimism among investors that the unrest in Tarai as well as India-imposed economic blockade will come to an end propelled the benchmark index to a record high. Last week, there were news reports suggesting that ruling parties and agitating Madhesi parties were inching closer to a deal to end the Tarai turmoil.
Similarly, the full-fledged operation of dematerialized form of shares trading since Sunday has also contributed to the market rally. After continuous attempts to enforce full-fledged operation of central depository system, Nepse completely replaced the paper-based trading from Sunday.
Stock brokers say that the liquidity surplus in the banking industry that has drive down interest rates has also boosted the stock market. "Falling interest rates has been an opportunity for easy financing for investors. Buying pressure drove stock price up," Anjan Raj Poudyal, former president of Stock Brokers Association of Nepal (SBAN), said.
A total of 3.76 million units of shares of 106 companies worth Rs 2.5 billion were traded in the market this week through 11,919 transactions. The turnover is 2.23 percent higher compared to last week.
Development Banks group led the gaining side as its sub-index jumped 20.39 points to close at 1,178.52 points. This was followed by 'Others' group which ended 5.87 points higher at 804.75 points. Banking, the heavyweight group, also inched up 0.97 point to settle at 1,105.95 points. Insurance group, which was bullish until last week, however, was the biggest loser of the week as its sub-index slumped 65.96 points to close at 1,790.75 points. Manufacturing and Processing sub-index also dived 52.35 points to end the week at 1,790.75 points. Hydropower group also ended 9.42 points lower at 2,152.12 points. Sub-indices of Finance and Hotels groups also fell 3.35 points and 0.07 point, respectively, to close at 583.51 points and 1,742.67 points.
Sanima Bank Ltd led the league table of companies in terms of turnover (Rs 202.96 million) this week. Similarly, Nepal Bank Ltd was the top in terms of number of shares traded (382,000 units), while Global IME Bank Ltd led the list of companies in terms of number of transactions (870).
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