Laxmi Capital News
Stock rally continues as Nepse goes up 8 points

Nepal StockExchange (Nepse) benchmark index rebounded 8.49 points this week to close at1,440.29 points on Wednesday-the last trading day of the week. 

Due to publicholiday on Thursday to mark National Unity Day, Nepse trading floor remainedopened only for four days. 

Following a steepdecline for few weeks, the stocks have recovered their value to some extents inlast weeks. Earlier last week, the benchmark index had bounced back 33.25points ending the losing streak of previous three weeks. The stock rally beganfrom the first trading day and continued until the last trading day when thebenchmark index observed a correction. Due to the landslide victory that leftalliance garnered in the recently held elections of national parliament andprovincial assemblies, stocks were in a freefall until few weeks ago. The stockmarket rout worsened further after interest rates of deposit and loan start toskyrocket amid acute shortage of lendable fund in the banking system. 

According toanalysts, stocks have recovered in recent days as many investors have found itan opportune moment to get hold of shares whose value have plunged heavily inlast few weeks. They, however, say that the direction of the stocks largelydepends on the liquidity position of bank and interest rates. 

Most of thetrading groups went up in the week. Hotels group was the highest gainer withits sub-index climbing up 22.55 points to end at 2,152.57 points. Banking, theheavyweight group, also rose 11.19 points and closed at 1,244.95 points.Development Bank group ended 9.51 points higher at 1,614.82 points. Financegroup logged a gain of 3.86 points to settle at 735.74 points. Sub-indices of Hydropowerand Trading groups inched up 1.16 points and 1.69 points, respectively, closingat 1,921.11 points and 192.4 points. Insurance, however, suffered a loss of13.38 points to finish at 7,457.63 points. Manufacturing and processing groupshed 28.2 points to close at 2,506.8 points. Microfinance group also fell 3.17points to close at 1,741.97 points. 

Bonus shares ofNgadi Power Group Limited, Sanima Bank Ltd, Nabil Bank Ltd and Tourism Bank Ltdwere listed in Nepse for the trading. Similarly, rights shares of ExcelDevelopment Bank Ltd also got listed for the trading in the secondarymarket. 

Nepal LifeInsurance Company Ltd topped the list of companies in terms of turnover (Rs237.6 million), traded shares (199,000 units) and number of transactions (1,475). 

A total of 4.1million units shares of 174 companies worth Rs 1.71 billion were traded in themarket this week through 17,393 transactions. The turnover is 36.79 percentlower than that of the last week.

Source: My Republica, 14th January2018

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