Finance Minister Dr Baburam Bhattarai had assured share investors on Friday that the government would extend support for the development of capital market terming it as the foundation for economic development.
The NEPSE index gained 16.91 points or 2.54 percent to close at 683.5 points on Sunday.
The index had rose 27 points during the first hour of transaction prompting NEPSE to impose circuit breaker.
As per an existing provision, NEPSE can announce a circuit break – a suspension of transactions for 15 minutes when the index goes up or down by 3 percent at one session, to control overheating of transactions.
According to NEPSE, total turnover of shares reached Rs 832 million with trading of 90,041 units of shares through 1,379 transactions. Total market capitalization rose to Rs 42.47 billions till Sunday’s closing.
The price of Nepal Telecom shares contributed significantly to the gain in NEPSE index. NT’s share price went up to Rs 577 per unit from Rs 540.
However, analysts are not optimistic about further rise in markets in coming days.
“I don’t think this trend (gain in NEPSE) will continue in the next days as the index appeared to be volatile within one day’s transaction,” Nanda Kishore Mundala, president of Stock Brokers Association told myrepublica.com.
Mudala attributed the surge in NEPSE index to positive remark by finance minister on capital market.
“Investors are more optimistic about possible announcement of rights share and bonus shares at the end of third quarter and the close of current fiscal year,” said Mundala.
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