Nepse scales 500 points

For the first time in last eight years, the Nepal Stock Exchange (Nepse) index has climbed over 500 points.

On Wednesday, the Nepse index reached 503.02 points – crossing over the psychological barrier of 500 points.

It had gained 8.84 points compared to Tuesday when the index had stood at 494.18 points. With this increase, the total market capitalization has reached Rs 127 billion.

It was back in 1999 that Nepse had reached record level of 547 points. However, in subsequent years due to intensification of conflict, decline in investor confidence and economic debacle, the Nepse – the only secondary capital market of the country – continuously fell down and went below 300 points. However, in the last six months, the Nepse has continued to gain points rapidly.

The recent rise in Nepse index, as usual, is triggered by increase in share prices of commercial banks and financial institutions – which constitute 80 percent of the listed companies in the Nepse.

Talking to Kantipur daily, general manager of Nepse Rewat Bahadur Karki said that recent peace process along with some speculative transactions have pushed the index. nepalnews.com sd Dec 14 06

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