Nepse index looks up to break all-time high record

 Though, the economy is not doing well due to coronavirus-induced lockdown for almost 4 months and subsequent prohibitory order, the share market has been looking up to break one or the other record every day.

Just a couple of days ago, the secondary market recorded the historic turnover of almost 7 billion in a day, and today the market almost broke its 4 year old all-time high record of 1,881.45 points. The Nepal Stock Exchange (Nepse) index – the share market indicator – gained a whopping 64.98 points today to close at 1,875.10 points, almost 7 points less to break the all-time high record. However, this is the third-highest close in the history of Nepse. The index is only 6.35 points away from the all-time high of 1,881.45 points maintained in the previous bull cycle 4 years ago, also due to no investment option for the investors and high liquidity in the banking system due to pandemic, according to the market analysts.

The Nepse index today – the fourth day of the trading – opened at 1,820.87 points and witnessed some 18,846,181 shares exchange the hands through 42,151 transactions. The trading of 196 scrips brought the total turnover to a little over Rs 6.81 billion, which is also the second-highest turnover in Nepse history, second only to the record maintained last week.

Likewise, the float index also gained 3.81 points to close at 127.13, while the sensitive index closed at 362.33 after gaining 12.96 points in a day’s trading. “Neco Insurance Promoter has the highest individual scrip turnover of Rs 422.9 million,” according to the Nepse.

According to the classical definition, the share market is the mirror of economy, but domestic share market also broke the classical definition of share market being the mirror of economy as the Nepali economy is doing poorly. However, the economic growth – measured by Gross Domestic Production (GDP) – and domestic share market – measured by Nepse index – has positive correlation till now. This fiscal year, the domestic share market might break that also.