Share prices have gone up substantially following the announcement of budget for fiscal year 2009/2010.

The increase in share transactions and the rise in the prices are attributed to the reduction of capital gain tax from 15 per cent to 10 per cent. The reduction of capital gain tax means the investors will have to pay less tax to the government while buying shares thereby increasing their net profit.

Prices of shares of almost all companies listed in Nepal Stock Exchange (NEPSE) started rising as soon as the share market opened on Tuesday, for the first time after the announcement of the budget.

Nepal's share performance indicator NEPSE Index increased by 26.23 points to 743.69, close to a seventh month high.

Prices of all but one of the 40 companies transacted Tuesday increased with hydropower and banking sector performing better than other sectors.

The NEPSE index of hydropower sector grew by 67.7 points and that of banking sector grew by 25.57 points.

Likewise, the index of insurance sector grew by 20.93 points and that of development sector grew by 16 points.

All but finance sector posted a double digit growth. The finance sector grew by 5.97 points.

Only one company posted a negative growth during Tuesday's transactions. National Hydropower Company lost its share prices by 1.1 per cent.

The top five gainers for Tuesday were Butwal Power Company with a growth of 9.95 percent, Nepal Life Insurance Company Limited, Citizens Bank International Limited ICFC Bittiya Sansthan Limited and Annapurna Bikash Bank Limited.

Among 18 commercial banks listed in the NEPSE, Nabil bank gained most with an increase of 205 points in its share price. Similarly, Sanima bank gained 40 points, the highest among the seven development banks listed in the NEPSE.

Nepal's share market saw a total turn over of Rs 39.528 million through transactions of 66749 units of share on Tuesday. nepalnews.com