Impressive performance of BFIs in Q2 lifts Nepse

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KATHMANDU, Feb 26 : Nepal Stock Exchange (Nepse) benchmark went up 4.6 points this week to close at 1,283.52 points on Thursday -- the last trading day of the week.

The stock market is on a bullish trend in recent weeks as investors are buoyed by positive political developments, falling interest rates and better-than-expected performance of bank and financial institutions (BFIs) in the second quarter of 2015/16, says experts.

"The stock market rally is mainly due to the central bank's decision to raise minimum paid-up capital of BFIs. Investors are expecting BFIs to distribute bonus and rights shares to meet the new paid-up capital requirement. It has sent the benchmark index to new highs," Pravin Raman Parajuli, CEO of Nabil Investment Banking Ltd. "The financial reports for second quarter of 2015/16 shows BFIs aren't affected much by the Tarai turmoil, Indian blockade and the earthquakes of April and May. This has also boosted the morale of investors."

Finance group was the biggest gainer of the week as its sub-index jumped 26.01 points to close at 638.81 points. Sub-indices of Development Bank and Banking also went up 6.79 points and 5.59 points, respectively, to close at 1,267.64 points and 1,182.26 points. Others group also ended 5.87 points higher to close 828.24 points. Hotels group was the biggest loser of the week as its sub-index took a plunge of 60.83 points to settle at 1,710.84 points. Insurance group followed suit with its sub-index shedding 33.55 points to close at 5,514.67 points. Hydropower group also fell 26.17 points to close at 2,246.25 points. Manufacturing and Processing, and 'Trading' groups remained unchanged at 2,008.64 points and 201.38 points, respectively.

A total of 8.01 million units of shares of 138 companies worth Rs 2.83 billion were traded in the market this week through 11,696 transactions.