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NEPSE Reaches All-time High

Crosses 1400 points

  1 min 35 sec to read
NEPSE Reaches All-time High
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April 15: NEPSE index has set a new record with 1405 points on Thursday. With the gain of 444 points, investors’ assets have been increased by Rs 500 billion (including additional new shares) over the last year. Investors’ assets have exceeded Rs 1.5 trillion for the first time on Thursday. Similarly, the total market capitalisation reached Rs 1.515 trillion on the last trading day for the week ending April 14.

Since the companies are publishing their third quarter financial reports, further enthusiasm can be seen in market. The first company to publish such report, First Microfinance Development Bank has reported 56 percent growth in its net profit to Rs 38 million. As the benchmark index of the country’s capital market is dominated by BFIs, indication of increase in net profits of BFIs has been further pushing the market upwards. Increase in investors’ expectations is also backed by the third quarter financial reports of the listed companies who have weathered the impacts of earthquake and the border blockade.

According to the market trend, annual profit of any company is estimated from third quarter financial report. With the expectation of profit, trading activities have increased sharply which was also seen in the previous corresponding seasons. 

Share market is also gaining from low interest rates as banks are still flooded with liquidity. It is signaled by weighted average interbank interest rate which was 1.98 percent on April 10. With the availability of cheap money, investments in the stock market have sharply risen.

 Share trading worth of Rs 560 million was carried out on Thursday. Besides the ‘Other’ group, all groups have shown increase in share transactions. Big improvement was seen in Development Bank, Insurance and Commercial Banks group on Thursday.

 

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