Share market rejoices over CA election results

Though it might take a week to announce the complete Constituent Assembly (CA) election results, the share market has already started reacting positively to the early results that has indicated liberal parties led-government.

Nepal Stock Market (Nepse) index jumped up by 33.88 points or 5.64 per cent to to close at 634.3 points today after the election results boosted the investors confidence.

"The market reacted positively to the election results," said Stock Brokers' Association Nepal president Narendra Raj Sinjapati.

"The sustained growth will however depend on the complete results that is expected in a week," he said, adding that the market also reacted positively due to the projection of liberal government.

From today's result, Nepali Congress (NC) is leading followed by CPN-UML, whereas the UCPN-Maoist that is not liberal towards capital market seems to become the third largest party.

However, the Nepse today suspended the day's trading after third circuit breaker, according to the regulation. The Nepse index jumped up over three per cent, immediately after the market opened, attracting the circuit breaker for 15 minutes. Likewise, the market again jumped up over four per cent and attracted the second circuit breaker for half an hour. The Nepse suspended the trading for the day after the index jumped up over five per cent.

"The peaceful CA election and indication of liberal parties-led government as the early results started coming from today morning brought confidence back to the investors," according to the market analyst Rabindra Bhattarai.

The insurance sub-group gained the highest 78.36 points to close the market at 1605.43 points, whereas hydropower subgroup gained 65.89 points followed by others sub-group 51.68 points and banking sub-group 38.42 points.

The shareholders of Bank of Kathmandu, NLIC and Nepal Bangladesh Bank earned some 10 per cent, whereas Nabil Bank's shareholders earned 9.96 per cent today.

Earlier the market index that was at the all-time high of 1175.38 points in August 2008 started plunging after the formation of UCPN-Maoist government led by then prime minister Puspa Kamal Dahal and finance minister Dr Baburam Bhattarai, who irresponsibly compared the stock market to 'gambling'.