The benchmark index had reached 1205.84 points on September 15 but soon starting retreating in the wake of Tarai turmoil and unofficial Indian blockade triggered by the discontentment over promulgation of new constitution.Nepse gained 21.84 points, or 1.84 percent, on Sunday amid hopes that political parties were inching closer toward an agreement to end the Tarai turmoil.
The market had plunged to 1,022.77 points on November 29 before taking an upward movement to touch the record high level. Stock market observers say that the market rally is largely fueled by the improving confidence of investors due to easing blockade, weakening agitation of Madhes-based parties, and positive political development toward ending the stalemate.
"Apart from political factors, liquidity surplus and falling interest rates have also helped the rally as investors are easily getting the fund to buy shares," Anjan Raj Poudyal, former president of Stock Brokers Association of Nepal (SBAN), told Republica.
The benchmark's record also coincides with the beginning of full-fledged implementation of dematerialized form of shares trading. Nepse stopped accepting paper-based trading from Sunday itself. As 62 companies have not yet become member of central depository system, Nepse has suspended trading of these companies' securities for the time being. Similarly, trading of securities of 22 companies is already suspended due to their merger and acquisition process or failure to pay listing fees to Nepse.
Insurance group was the biggest gainer of the day as its sub-index jumped by 132.16 points to settle at 5,507.9 points. Banking, the heavyweight group in the secondary market, also ended 21.01 points higher at 1,101.43 points. Hotels, Development Bank, Hydropower and 'Others' groups also logged gains on Sunday. Finance group, however, shed 2.38 points to close the day's trading at 583.26 points.
A total of 825,954 units of shares of 89 companies worth Rs 548.12 million were traded in the market through 2,569 transactions on Sunday.
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