Monday, October 16, 2017

Nepse rebounds on election hopes

Nepal Stock Exchange (Nepse) benchmark index jumped by 46.59 points today to close the market at 1,564.87 points due to investors' confidence on provincial and federal polls scheduled on November 26 and December 7. The Election Commission has already started the election process.
The share market rebounded on the second trading day of the week by double-digit following a continous drop after Dashain festival.
The single-day surge in the benchmark index was the highest in six months for a market that has recovered somewhat after a continuous dive due to the Dashain festival. The last time the market had surged by this level was on April 19 when the benchmark index climbed up by 49.88 points.
Share price of 154 companies went up on Monday while nine companies suffered loss. 
A total of 1.47 million units of shares of 163 companies worth Rs 615.04 million were traded in the market this week through 4,469 transactions.
Similarly, the investors' confidence also looked up due to comfortable liquidity situation in the banking system. Investors are also expecting the interest rates to fall with the bank and financial institutions having comfortable liquidity position.
Amid mismatch on the growth of deposit and loans, the financial institutions were facing the shortage of loanable fund until last month. The shortage has pushed interest rates to the higher level.

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