Thursday, November 26, 2020

Nepse posts three historic records, all-time high index, largest turnover and highest number of transaction

 It seems coronavirus crisis has not any negative impact on domestic market as the Nepse index went up by 0.98 per cent or 18.43 points to close at 1,893.24 points – the highest in the history – today. The previous highest close was 1,881.45 on July 27, 2016.

Though the Nepse index scaled as high as 1,926.91 points – during the intraday session today – it settled to close at 1,893.24 points also with the highest turnover of Rs 7.61 billion, which is also the record turn over in the market till date. Likewise, the secondary market witnessed some 17,188,099 shares of 201 listed firms are traded through 70,003 transactions, which is also the highest number of transactions in a single trading day, today the last trading day of the week.

Since the banks and financial institutions are flushed with lonable liquidity, and there is no other investment opportunity in the market due to coronavirus induced slowdown in economy, the investors have been putting their money on share, according to the analysts. “The change in guard in the Finance Ministry has also played the catalyst to push the share market up,” they claimed, as the incumbent finance minister Bishnu Prasad Poudel is considered market friendly, compared to his predecessor Dr Yuba Raj Khatiwada. 

The float index gained 1.45 points and closed at 128.54 while the sensitive index closed at 365.18 points after gaining 2.85 points, according to the Nepse, that is yet dominated by the banks and financial institutions. The banking index gained the most 2.7 per cent helping to push the Nepse up.

Nepal Reinsurance Company (NRIC) has the highest individual scrip turnover of Rs 581.3 million, whereas the shares of Prabhu Bank (PRVU) was the highest trading today. Likewise, four companies that hit the 10 per cent positive circuit today are NMB Laghubitta Bittiya Sanstha (NMBMF), Panchthar Power Company Ltd (PPCL), Himalaya Urja Bikas Company (HURJA), and Ankhukhola Hydropower Company Ltd (AKJCL).

The Salt Trading Corporation (STC) has however lost the most at 6.18 per cent. The trading index lost the most at 5.33 per cent.

The the Nepse index and gross domestic production (GDP) has had the positive correlation in the past years, it seems to have the negative correlation this fiscal year. In the past years, the Nepse has recorded highest when the GDP also posted high in the respective fiscal years. But this fiscal year, the GDP seems to be hovering between 0 to 2 per cent, according to the projections from multilateral development partners including Asian Development Bank (ADB), World Bank (WB) and International Monetary Fund (IMF), and also the Central Bureau of Statistics (CBS), and National Planning Commission (NPC).     

The lowest index level was on June 15, 2011 – 292.00
The highest index was on July 27 2016 – 1,881.45
The lowest Index level on March 3, 2019 – 1,100.58
The highest index is on today, Nov 26 2020 – 1893.25