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Bullish trend continues at capital market

The bullish trend at the Nepal Stock Exchange (Nepse) continued to soar for yet another week. The Nepse index maintained new historic highs throughout the week, a growth attributed to the strong performance of commercial banks at the stock market.

The Nepse index registered a sound double-digit growth of 27.72 points to reach a new high of 643.15 points at the end of this week.
After the capital market opened its trading at 614.43 points on Sunday, it continued to climb up through the week and set a new record. According to trade analysts, soaring share prices of commercial banks, insurance companies and hydropower companies supported the growth.

The weekly turnover, however, dropped significantly this week to Rs 297.8 million with 914,428 units shares being traded through 2,357 transactions, against last week’s figure of Rs 497.4 million through the trading of 1,453,396 shares. Out of the total 91 listed companies, 65 companies saw their transactions this week. The group wise share trading analysis shows that all major groups including commercial banks and insurance groups posted an impressive growth.

Stock market analysts have been somewhat bewildered by the unusual growth in major indices, even terming the current growth unjustifiable because it is largely caused by speculative buying and investors’ expectations that the economy will gain momentum. nepalnews.com ag July 15 07