Shares up 53.69pts in record-making week

The Nepali stock market climbed to a series of new highs over the week, making a weekly gain of 53.69 points. The Nepal Stock Exchange (NEPSE) Index ended at 1,101.36 points, up from an opening of 1,047.67 points.

Investors, unnecessarily enthused over the recent publication of financial results of the listed companies, sent the prices soaring, market watchers said.

But, the stock market made a rocky start on the last day trading but reached a new high before taking a beating and lost 26.77 points during the day. Analysts said that this was the beginning of correction in the overheated prices.

Investors said they see good prospects in shares due to financial institutions' spree to issue rights shares, while analysts argued that the investors were buying on exuberance, leading to overheated prices.

Navraj Pokharel, a stock broker, said the market is entering into an inflated zone, heightening risks that it may meet with an 'accident', when it reaches a new turning point.

Reacting to the soaring prices, NEPSE has asked the investors to pick up shares by not getting carried away by whim. “They must analyze investment protection, risk, liquidity and returns prior to investment on shares,” said NEPSE, in a statement.

Over the week, commercial banks were the best performers, with their combined index rising 71.34 points. Their index rose to 1,166.98 points. Investors of the hydropower sector made remarkable growth as the sector's index rose 43.70 points to close at 1,311.54 points. The shares of finance companies gained 12.24 points, as their index finished at 1,201.21 points. The hotel sector's index increased by 2.01 points to 345.58 points.

Those investing in insurance companies and development banks however lost. The index of the insurance sector shed 9.21 points, while the index of the development banks' group declined by 11.55 points.

606,775 units of shares changed hands in the bourse to register a turnover of Rs 449.7 million. Nepal Credit and Commerce Bank kept itself ahead of others by turnover. Its shares valued at Rs 48.95 million were traded over the week.
Source: eKantipur