KATHMANDU, NOVEMBER 21
Ample liquidity and lack of other investment avenues due to the coronavirus pandemic has lured investors to the local bourse, fuelling the market rally in recent days.
The benchmark index had opened at 1,718.50 points on Wednesday, when the market resumed trading after the Tihar holidays.
Then on Thursday, Nepse index surged by 2.08 per cent or 36.32 points to close the trading week at 1,778.12 points. The share market recorded highest single day turnover of Rs 6.12 billion, while total market capitalisation reached Rs 2.38 trillion, also a record-high. All subgroups witnessed gains on the last trading day of the review week.
Sensitive index rose by 1.17 per cent or 3.98 points to 343.07 points.
Float index also went up by 2.69 per cent or 3.17 points to 120.99 points.
Altogether, 25.74 million shares of 200 companies were traded through 100,014 transactions that amounted to Rs 10.91 billion in the review period. The weekly turnover was 46.13 per cent less compared to the preceding week when 214,234 transactions of 56.97 million shares of 208 companies amounting to Rs 20.25 billion had been undertaken.
However, considering that the market had opened for only two days in the review week against the normal five days in the past week, the average daily turnover in the review period surged by a staggering 34.67 per cent to Rs 5.45 billion, against Rs 4.05 billion of past week.
“There is no other reason for the bull run in the share market than lack of other investment avenues,” said a share market analysts, advising investors to be cautious and aware of the trend.
All the subgroups recorded gains in the trading week, with three of them soaring by more than 10 percentage points. Investors’ attraction to trading companies’ stocks propelled the subgroup by an eye-popping 20.91 per cent or 379.47 points to 2,193.94 points. Manufacturing saw a growth of 12.97 per cent or 440.17 points to 3,833.87 points and hotels surged by 11.66 per cent or 221.22 points to 2,118.59 points.
Non-life insurance jumped 9.04 per cent or 796.63 points to 9,610.63 points; life insurance saw the highest number of points gained with the sub-index up 8.76 per cent or 896.55 points to 11,126.86 points; and others rose by 6.87 per cent or 88.12 points to 1,370.69 points.
Finance went up by 2.56 per cent or 22.18 points to 889.22 points, trailed by microfinance that landed at 2,769.18 points, up 2.25 per cent or 60.97 points. Mutual funds subgroup ascended by 1.99 per cent or 0.23 point to 11.78 points.
Though in green, the gain of remaining three subgroups — development banks, hydropower and banking — was muted at less than one per cent.
In terms of share in the total weekly turnover, however, banking subgroup was the leader with Rs 2.38 billion or 21.83 per cent of the total traded amount in the week.