Nepse rises by 21 points

Published On: June 10, 2017 01:00 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, June 10: Nepal Stock Exchange (Nepse) index went up by 21.38 to close at 1,615.19 points on Thursday -- the last trading day of the week.

Though the benchmark index had climbed up to 1637.37 points on Tuesday with investors encouraged to put their money on stocks with the formation of new government under the leadership of Nepali Congress, it shed values in the last two trading days. 

“Investment outlook was also positive as Madhesh-based parties are expected to participate in the second phase of local level polls. But is not clear when they would come on board the election process,” Anjan Raj Poudyal, former president of Stock Brokers Association of Nepal (SBAN), said. “There were some minor fluctuations after the formation of new government. It was expected as it happens to be an off-season for the market as almost all the companies have already distributed dividend.”

He expects the market to remain stable in the coming few weeks till the current fiscal year. 

“High interest rate for margin lending has also affected investors,” added Poudyal.

Analysts expect the market to move in the green zone in the coming week as the country goes into second phase of local level polls.

Insurance group was the biggest gainer of the week as its sub-index jumped up by 32.09 points to close at 8,551.9 points this week. Development Bank and Commercial Bank sub-indices also ended 27.14 points and 25.57 points higher, respectively, to close at 1,967.04 points and 1,445.84 points. Similarly, the sub-indices of Hydropower and Others group appreciated by 20.26 and 13.31 points, respectively, to end the week at 2,042.56 points and 703.67 points. 

Hotels and Finance group, however, shed 12.26 points and 3.31 points, respectively, to close the week's trading at 2,213.67 points and 768.01 points. Manufacturing group also saw a marginal decline of 0.31 to close at 24.33.84 points. Trading group remained unchanged at 212.76 points. 

A total of 5.94 million units of shares of 159 companies worth Rs 3.35 billion changed hands through 34,274 transactions this week. The turnover is 17.64 percent higher compared to last week.

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