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Investor confidence boosts stock market



KATHMANDU: The stock market was on an upbeat again due to the positive political development this week — February 10 to 14.

The benchmark index jumped by 16.58 points as chances of a national government being formed under the leadership of the Chief Justice with the support of all major parties got investors excited. Positive political cues mean a better economic future, hence investors were favouring shares for a possible future bull run.

The benchmark index fluctuated all week along with the country’s recent political developments.

The market opened at 513.42 points on Sunday after going through two weeks of slump. The index inched up to 514.57 points by the time of closing. It jumped to 532.17 points on Tuesday due to the positive political development.

The climb did not sustain the other day as the index went down to 526.81 points. However, it once again increased on the last day to 530 points.

The possibility of better days ahead pushed the trading volume up by 24 per cent this week along with the stock prices. In four trading days, the market witnessed trading of 1.7 million unit shares worth Rs 558.7 million of 116 companies in 5190 transactions. Last week, trading was worth Rs 444.8 million.

Stock trading of class ‘A’ companies accounted for 47.82 per cent of total trading, amounting to Rs 264.2 million. The sensitive index that measures the performance of blue chip stocks increased by 4.55 points. The indicator of the performance of actual shares traded — float index — went up by 1.23 points to 36.48 points.

This week, the hydropower subgroup was the biggest gainer at the stock exchange. Chilime Hydropower and Butwal Power Company earned Rs 57 and Rs 15 per unit, respectively. The increase in their share prices pulled the hydropower index up by 34.81 points.

The manufacturing subgroup came in a close second by gaining 33.73 points following Unilever’s gain of Rs 700 on a single unit this week.

The insurance subgroup gained 31.56 points. The share price of Nepal Life Insurance Company is approaching Rs 2000 after its hefty dividend announcement of 70 per cent bonus shares and 56 per cent cash dividend.

Hotels, development banks and finance companies earned 19.39 points, 1.79 points and 2.11 points, respectively.

Others was the only subgroup that went down by 4.7 points as the slump in Nepal Telecom’s profit affected its share price.

This week, Nepal Bangladesh Bank was the forerunner in terms of number of transactions with 337 transactions. In terms of numbers of shares traded and turnover, NIDC Capital Markets (NCML) recorded the highest number

of shares traded with trading

of 468,545 unit shares worth

Rs 70.7 million.

NIDC Development Bank sold its shares in NCML to Rastriya Beema Sansthan.

The top five companies in terms of turnover were NIDC Capital Markets (Rs 70.75 million), Nepal Bangladesh Bank (Rs 65.32 million), Everest Bank (Rs 36.94 million), Nabil Bank (Rs 35.42 million) and Bank of Kathmandu (Rs 34.52 million).

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