This is the highest single-day gain in the past one and half months. The market was in a downward trend for the last three months when the Madhes-based parties spearheaded protest against the new constitution. The market last logged double-digit gain on September 23 when the benchmark index shot up by 27.28 points to close at 1,183.36 points.The sudden rise in benchmark index on the day can be attributed to positive news reports regarding India's indication to lift the undeclared economic blockade that it has been imposing for the past one and half months.
"Positive news reports boosted investors' sentiment on Monday," Guna Raj Bhusal of Aryatara Investment and Securities Pvt Ltd told Republica. "Tarai unrest and economic blockade played spoilsport for the stock market that was on bullish trend," he added.
Nepse was at an all-time-high of 1,205.84 on September 25 helped by the Nepal Rastra Bank's decision to raise minimum paid-up capital requirement for bank and financial institutions (BFIs). However, the unrest in the wake of the constitution promulgation and the economic blockade imposed had driven the market downward.
"The market should have taken further leap due promulgation of constitution, attractive divided distribution by listed companies, and liquidity surplus in the banking system," said Bhusal.
All trading groups except 'Others' posted gains on Monday. Insurance was the biggest gainer as its sub-index jumped by 96.49 points to close at 4,624.96 points. Hotels and Banking groups followed suit, gaining 31.88 points and 27.33 points to close at 1,828.18 points and 1,031.93 points, respectively. Development Bank ended 13.47 points higher at 927.04 points. Similarly, Hydropower group also went up 4.17 points to close at 2,006.41 points. Finance sub-index inched up 1.64 points to close at 554.76 points. 'Others' group, however, went down by 1.17 points to close at 765.99 points.
A total of 1.06 million units of shares of 111 companies worth Rs 243.76 million were traded in the market on Monday through 1,562 transactions.
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