The country´s sole capital market saw sub-indices of most of the trading groups gain points on the day pushing up pushing up the benchmark Nepse beyond 500 points mark for the first time in more than two and a half months. Nepse index had touched 500.71 points on March 9, down from 504.52 points recorded a day earlier. [break]
Stock brokers said impressive sales of promoter shares amid positive political development in the country were the major factors that contributed to the double digit growth in the benchmark index. Total transaction increased on the day due to massive sales of promoter shares of Sanima Development Bank.
“Trading of shares of Sanima Development Bank alone covered over 70 percent of the total transaction amount of the day,” Nanda Kishore Mundada, president of Nepal Stock Brokers Association, told myrepublica.com on Sunday.
“It seems that investors are encouraged by the positive political development in the country.”
A total of 320,000 units of promoter shares of Sanima Development Bank worth Rs 88 million were traded at Rs 275 per unit on the day.
Mundada said investors are also buying new shares expecting dividend after the completion of the current fiscal year. He, however, maintained that it would be challenging to sustain the Nepse index´s surge.
Sensitive Index, which measures the trading of Category ´A´ companies listed in the secondary market, also rose by 5.83 percent or 6.63 points to close at 124.06 points on the day.
Nepse had to announce circuit break -- temporary suspension of transactions put in place to control unnatural fluctuation of share prices during the trading -- three times on Sunday. Nepse imposes circuit breaker if the index surges 3 percent in the first hour, 4 percent in the second hour and 5 percent in the third hour of the transaction session.
Sub-indices of majority of trading groups recorded impressive gains on the day. Banks and Developments groups saw their sub-indices go up 35.66 and 17.39 points to close at 493.81 points and 500.25 points respectively.
Similarly, the sub-indices of Hydropower, Finance and Others groups also surged by 17.39 points, 6.49 points and 21.15 points to close at 500.25 points, 760.29 points and 573.37 points respectively.
A total of 374,349 units of shares and 64 scrips worth Rs 123 million changed hands through 542 transactions on the day. Total market capitalization touched Rs 395.48 billion on the day.
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