Nepse on recovery path, gains 7.72 points

The capital market is yet to catch a bullish trend, but signals are positive. Since the market came out from a heavy downfall two weeks ago, neither has it been witnessing a heavy rise nor a massive decline.

The share market witnessed a growth of 7.72 points last week as Nepal Stock Exchange (Nepse) index moved up to 340.95 points on Thursday from 333.23 points on Sunday. Not only the market index, total turnover and the number of traded shares also surged considerably.

The total transaction amount rose by 196.56 percent to Rs 374.17 million compared to that in the previous week. The huge transaction of Laxmi Bank’s shares as a result of its ownership transfer through the secondary market contributed to the rise. Laxmi Bank alone witnessed transaction of 837,037 shares worth Rs 206.18 million.


Relatively stable situation in the market after a long freefall suggests that the market is on a recovery path, according to analysts.  “Nepse is showing positive signs of correction after it hit the five-year low,” said Nanda Kishore Mundara, a stock broker.

Last week, hydropower was the only sector registering a satisfactory growth, as its sub index settled at 608.33 points on the closing day, up from 46.15 on the first day of the week. Commercial banks, heavyweight in the market, registered a modest growth of 11.94 points, whereas sub sectors like manufacturing, insurance, development banks and finance companies registered a loss.

Possibility of the annual budget addressing problems of the stock market has energised investors, according to analysts. “The government’s positive measures through the budget will lead the market to a rapid recovery,” said Mundada. “Possible relaxation in the capital gain tax on stock transactions may boost investors’ confidence.”