Share market bull overrides political chaos



The mid-week buying spree offset the initial panic selling in the secondary market, although the profit-booking of the last trading day capped the gains. Subsequently, the index of Exchange () inched up 0.30 per cent or 6.11 points week-onweek in the trading period between December 20 and 24.

“The recent developments in the political front have dampened investor sentiment, but with attractive returns and lack of other investment avenues, investors continue to flock to the share market, but they have become more cautious now as evident by the drop in daily turnover and trading volume in the recent days,” said a market analyst.

Opening at 2,032.52 points, the had slumped by a massive 96.88 points, as Prime Minister KP Sharma Oli recommended dissolution of the Federal Parliament during an emergency Cabinet meeting on Sunday morning.

President Bidhya Devi Bhandari then subsequently approved the proposal, causing a massive sell-off in the share market, as panicked investors sought to offload their holdings in anticipation of a looming political chaos.

However, the bull overpowered the bear over the next three days, with the Nepse index gaining 30.33 points on Monday and surging by a whopping 95.46 points on Tuesday. The benchmark index recorded an all- intra-day high of 2,127.22 on Wednesday, but as the optimism could not last, it managed to add only 7.04 points by the time of closing.

The profit-booking on the last trading day of the week, however, weighed on the local bourse, causing Nepse index to lose 9.83 points to end the trading week at 2,038.63 points.

The sensitive index, which measures the performance of class ‘A’ stocks, edged up by 0.21 per cent or 0.82 point to 386.77 points. The that gauges the performance of shares actually traded rose by 1.25 per cent or 1.73 points to 139.65 points.

Altogether, 61.03 million shares changed hands through 299,904 transactions that amounted to Rs 34.72 billion in the review week. The weekly turnover was 15.39 per cent higher than the preceding week when 259,203 transactions of 56.37 million shares worth Rs 30.09 billion had been undertaken.

Only four subgroups landed in the green territory in the review period, but investors’ preference of stocks resulted in the market rally.

Banking surged by 3.63 per cent or 54.15 points to rest at 1,547.42 points. In terms of points gained, however, topped the chart, jumping 446.08 points or 3.36 per cent to 13,704.18 points.

At other end of spectrum, others landed at the bottom, with the sub-index plunging by 5.71 per

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