Nepse gains 25.73 points on positive political development
KATHMANDU, Feb 17: The Nepal Stock Exchange (Nepse) index surged by 25.73 points, or 4.85 percent, to close at 555.93 points on Sunday as positive political development in the country boosted investors´ confidence.
Such was the demand for stocks that Nepse management had to impose circuit breaker three times. The first circuit breaker was clamped at 12:13 pm when Nepse index increased by more than 3 percent.
Though trading resumed after 15 minutes, second circuit breaker was clamped after just two minutes when the benchmark index surged by 4 percent. Though trading resumed after 20 minutes, the third circuit breaker was put in place at 1:12 pm after the index gained more than 5 percent.
As per the existing rule, trading is suspended for the day after the third and final circuit breaker is clamped.
“Nepse index surged due to favorable political developments as major political parties are close to forging consensus on forming a new government to hold Constituent Assembly (CA) election,” a share analyst told Republica.
Sub-indices of all trading group switched to green zone during the day´s trading. They Hydropower sector was the biggest gainer of the day as its sub-index gained 62.05 points to settle at 1081.07 points. Similarly, Banking sub-index - the heavyweight trading group in the secondary market -surged by 36.58 points to close at 557.19 points. Insurance sub-index closed the day´s trading at 873.78 points, up 24.94 points.
The sub-index of Others group also jumped by 14.1 points to 775.4 points, while the Development Bank sub-index closed at 249.5 points, up 1.3 points. Finance sub-index posted a marginal growth of 0.57 points to settle at 252.7 points.
A total of Rs 80.40 million worth of shares changed hands through 533 transactions on Sunday. Total market capitalization was recorded at Rs 535.49 billion.