Nepse logged gains for the third straight week with the benchmark index going up by 18.16 points. According to analysts, the market is on a path of recovery following slump in the immediate aftermath of the devastating earthquake of April 25."There was some downfall in the market due to psychological fear among the investors immediately after the stock market opened in the post-earthquake period. However, the earthquake did not make significant impact on the balance sheet of the listed companies in the third quarter which was one month away from the quake," Naveen Adhikari, assistant professor of Economics at Tribhuvan University, told Republica. He also pointed out recent positive political developments and seasonal effect as two factors boosting Nepse index.
"Recent developments signal that the new constitution will be drafted soon. This has boosted the confidence of investors. Though there could be some minor correction in the market, it is poised to rise in the coming days," Adhikari said, adding, "Announcement of benefits by the listed companies within few weeks also help to uplift the market."
Most of the trading groups ended on the green zone this week. Manufacturing and Processing group was the biggest gainer of the week with its sub-index jumping 32.09 points to close at 1,590.68 points. Development Bank and Hydropower groups followed suit, with their sub-indices going up by 16.68 points and 11.35 points, respectively, closing at 782.95 points and 2,107.77 points. Banking, the heavyweight trading group in the secondary market, also went up 5.99 points to close at 820.96 points. The Hotels sub-index also inched up 2.35 points to close at 1,854.82 points.
Insurance group, however, shed 26.91 points to close at 4,133.33 points. While the Finance sub-index fell 1.02 point to close at 516.51 points, Trading and Others groups remained unchanged at 213.11 points and 728.4 points, respectively.
A total of 3.66 million units of shares of 170 companies worth Rs 1.28 billion were traded in the market this week through 7,479 transactions. Total turnover was 19.41 percent lower than the turnover recorded last week.
Nabil Bank (Promoter) remained at the top of listed companies in terms of turnover (Rs 125.79 million), while Siddhartha Investment Growth Scheme 1 was at the top in terms of number of shares traded (775,000 units). Likewise, Prabhu Bank Ltd led the league table of listed companies in terms of number of transactions (359).
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