Nepal Stock Exchange (Nepse) broke the six year drought and shot up by 16.07 points to close the day’s trading at 846.78 points, today.
On January 28, 2007, the Nepse index had reached 842.6 points. However, it slid down to 292.31 points on June 15, 2011. After the successful second Constituent Assembly election in November, it started looking up.
Since November, the positive sentiments among investors, buoyed by the sweeping election results in favour of pro-market political parties, has been in bullish trend.
As always, banks and financial institutions are the market propellers, followed by insurance and hydropower sub groups.
According to president of Stock Brokers Association of Nepal Narendra Jung Sijapati the banking sector is still considered a heavyweight at the secondary market. The banking sector inched up 24.3 points to close at 742.44 points today.
A total of 1,656,197 units of shares of 121 companies worth Rs 502 million were traded in the secondary market through 2,736 transactions in the intra-day trading today.
A comfortable liquidity situation in banks, fall in interest rates and CDS and Clearing’s announcement to adopt fully automated clearance have also instilled confidence on investors.