Thursday, January 7, 2021

Nepse inches closer to pshycological 2,200 mark

 Nepal Stock Exchange (Nepse index inches close to a pshycological 2,200 points as it witnessed a double digit growth today to close the last trading day of the week with a new record.

After climbing 15.91 points today, the Nepse index closed at 2,194.49 points, making a new historic high, according to the Nepse. The buying pressure, despite the Constitutional crisis and seemingly political instability, has pushed the total turnover of over Rs 5.87 billion. Of all the sub-indices, trading sector saw considerable strength as it rose by 4.79 per cent, followed by manufacturing & processing sub-index that gained 2.06 per cent. Likewise, non-life insurance, microfinance and finance sectors posted 1 per cent gains each. But the others sector lost, though marginally, the Nepse data reveals.

In terms of market activity, Prabhu Bank’s shares witnessed the highest trading with a turnover of Rs 317 million, followed by Nepal Reinsurance Company (with Rs 274 million) and Chilime Hydropower Company (with Rs 248 million). Nepal Life Insurance Company, NIC Asia Bank and Himalayan Distillery are also the other top turnover stocks today.

However, Multipurpose Finance Company registered the biggest percentage gain of the day as its share price rallied by 10 per cent. Mirmire Laghubitta Bittiya Sanstha, IME General Insurance, Narayani Development Bank and Prabhu Life Insurance Company’s shares also saw notable buying pressure with each of these scrip rallying over 9 per cent, each.

The continuous rise in the share price in the domestic market – despite the Constitutional crisis and political instability – is attributed to the cheap interest rate and lack of other investment instruments. The interest rate in fixed deposit – as of today – hovers around 7 per cent forcing the people to invest in share.

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