Amid report that Nepal Rastra Bank (NRB) was relaxing the margin lending — loan against collateral of shares — the positive impact was seen in the country´s sole secondary share market.
"Investors are encouraged amid reports that NRB is relaxing the provision giving authority to banks to fix the limit on margin lending. This led the index to a double digit rise," said Nanda Kishore Mundada, a stock analyst.
With the announcement of Citizen Investment Trust (CIT) and Employees Provident to invest over Rs 1.5 billion in stock market, he said that stock market was returning to normalcy after months of slackness, leading to a seven-year low in Nepse index.
Due to circuit break, stock trading was held for only two hours on Sunday. As per the existing rules, Nepse can suspend the trading for 15 minutes if the transaction rises by 3 percent in the first hour of trading, by 45 minute if trading goes up by 4 percent in the second hour, and by one hour if the trading shootd up by 5 percent in the third hour.
During Sunday´s trading, all trading groups except Hotels saw their sub-indices move to the green territory. Banking and Development Bank groups witnessed their sub-indices rise by 18.05 points and 2 points, respectively. Similarly, Hydropower and Finance groups also went up by 20.92 points and 0.42 points, respectively. Sub-indices of Insurance and Others groups soared by 1.13 points and 20.92 points, respectively.
Total turnover on sunday stood at Rs 13.59 million through 520 transactions of 61,321 shares.
Related story
Nepse hits 2-year high after week's broad surge
-1200x560-1779450784.webp)
