Double digit gains in most of the trading groups pushed up NEPSE index -- the indicator of investors´ confidence in stock market. Stock analysts said reduction on the CGT -- a tax to be levied on income from trading of properties -- through the budget and hope of stable government in the coming days with the announcement of budget, are the major contributors to NEPSE´s move to the green territory.
“Investors are encouraged to invest in stock market as the government brought down CGT from 15 percent to 10 percent and expressed commitment to launch Central Depository System at NEPSE by mid-October,” Nanda Kishore Mundada, president of Nepal Stock Brokers Association told myrepublica.com.
“Moreover, no new Initial Public Offering (IPO) is coming in the market and applicants of previous IPOs have got back their money. So, share prices continued to go up as there is no dearth of money to invest in the market,” added Mundada.
During Tueday´s trading, sub-indices of Banking and Development Bank groups shot up by whopping 25.57 points and 16 percent to touch 780.24 points and 767.45 points respectively. In a similar note, Hydropower and Finance groups rose 67.7 points and 5.97 points to finish at 980.45 points and 696.86 points respectively at the end of the day´s trading. Insurance and Other groups´ sub-indices also posted impressive gains by 20.93 points and 42.29 points to 656.41 points and 723. 72 points respectively.
Sensitive index, the indicator of performance of Category ´A´ companies and Float Index- an indicator of all ordinary share in capital markets, also soared 6.06 points and 2.08 points to 198.18 points and 70. 94 points respectively.
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