Positive political development lifts Nepse

KATHMANDU, Aug 23 : The Nepal Stock Exchange (Nepse) index went up by 7.86 points this week as positive political development for CA elections as well as announcement of mutual funds by three commercial banks lifted investors´ sentiment.



Laxmi Bank, Nepal Investment Bank and NMB Bank are soon launching their mutual fund companies, while Siddhartha Capital, promoted by Siddhartha Bank, has already announced new mutual fund schemes.

The benchmark index, which was recorded at 540.54 points on Sunday, closed at 548.80 points on Tuesday as last two trading days of the week were closed due to public holiday. [break]



Anjan Raj Poudyal, former president of Nepal Stock Brokers´ Association Nepal, attributed buoyant mood in the secondary market to the progress in talks over CA election with the Mohan Baidya-led CPN-Maoist. “Likewise, upcoming mutual fund schemes of four companies as well as the release of satisfactory fourth quarter reports by the listed companies also encouraged investors to put more money on the secondary market,” said Poudyal.



Share analysts said the conversion of promoters´ shares of some commercial banks into ordinary shares did not affect the stock market as expected. According to share analysts, conversion of additional 19 percent promoters´ shares of three commercial banks (Kumari, Siddartha and NIC) didn´t create selling pressure at Nepse.

According to Nepse, a total of 2.79 million units of shares of 127 companies worth Rs 634.5 million were traded through 6,074 transactions this week. Last week, shares worth Rs 676.1 million had changed hands through 9,177 transactions.



The Hotel group was the biggest gainer of the week as its sub-index increased by 24.88 points to 671.86. Similarly, the sub-indices of Others, Commercial Banks and Development banks increased by 14.10 points, 8.93 points and 6.53 points, respectively, to 666.16 points, 535.98 points and 279.50 points. The Hydropower and Finance sub-indices also gained 5.40 points and 0.86 points to 1211.78 points and 279.50 points, respectively.

However, the sub-indices of Insurance and Production group declined by 10.90 points and 2.70 points, respectively, to 1222.28 and 886.41.

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