KATHMANDU, JUL 03 -
The capital market responded positively to the resignation of Prime Minister Madhav Kumar Nepal with the Nepal Stock Exchange Index (NEPSE) witnessing a double digit growth last week.

NEPSE witnessed a gain of 11.39 points. The benchmark index that had opened at 459.52 points on Monday settled at 470.91 points on Thursday.

The sluggish secondary market since the last few weeks, bounced back with double digit points last week as the market gained 15.16 points a day after the prime minister’s resignation on Thursday. Although the latest surge in the market is being seen as a hope for political stability following the prime minister’s resignation, experts say economic factors remain equally responsible for the market performance.

Jagadish Agrawal, a stock market expert told the Post the market’s self-correction measure from the lowest level to the upward level might have backed Thursday’s upsurge.

Birendra Raj Kharel, the chief of Pragyan Securities, said, “The improvement in the secondary market cannot be ruled out as long as the country heads towards political consensus.” He said the market may see stability in the upcoming days.

Both of them ruled out the possibility of continuation of Thursday’s upswing in the days ahead, citing “unfavourable economic situation” looming large in the country. Although the capital market witnessed a surge in the index, the number of shares traded went down along with market turnover and number of transactions. It may be due to the closure of the market for a day on the occasion of a public holiday.

Last week, the capital market saw a turnover of a mere Rs. 109.06 million against the Rs. 143.61 million the previous week; a fall of 24.06 percent. Similarly, the secondary market witnessed trading of 291,500 shares of 96 companies from 3,699 transactions.

For the second consecutive week, Asian Life Insurance Company saw the highest number of transactions with it’s shares changing hands for 784 times.

Bank of Kathmandu registered the highest turnover  Bhrikuti Vikas Bank led the bank to a pole position in terms of highest number of shares traded.



 

Posted on: 2010-07-04 08:21

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