June 13: Nepal Stock Exchange (NEPSE) index has once again reached the highest peak of all time. Experts attribute the expansion of the market to ‘Bullish’ psychology of the investors. “Apparently investors are in bullish psychology, due to which both NEPSE index and trading amount is reaching new heights on daily basis,” says an analyst.

On Sunday, share trading worth of Rs 1.96 billion took place. Similarly, NEPSE index has also reached all time high at 1,598 points on Sunday. It is nearly 36 percent growth than the recorded height created by NEPSE index 8 years ago. However, analysts caution new investors who want to enter market in the bullish trend.  “We cannot presume the next highest point of the market. Therefore, investors are at high risk, if investment is done carelessly in the period,” says Shrijesh Ghimire, CEO of NMB capital.

On Sunday, banking index recorded the highest growth of three percent. On the day, Standard Chartered Bank’s shares attracted more investors. Recently, the annual general meeting (AGM) of the bank has endorsed 25 percent bonus share. The investors expect the bank of re-issuing bonus share in order to meet the paid-up capital requirement attributing the price rise of the SCB shares. Investors’ attraction towards bank is increasing with the nearing deadline of paid-up capital requirement. “The share price of the bank has risen as there is low possibility of merger with other institutions. In order to raise the paid-up capital, the bank required to issue bonus or right shares,” says an analyst.

In the Nepali share market, right shares are also considered dividend. The right shares that can be purchase at Rs 100 fetch more money once listed in NEPSE which is the prime reason of attraction for investors towards the right shares. The same principle applies with Nepal Bangladesh Bank’s share which also attracted investors on Sunday. The bank has announced of distributing 80 percent right shares. Similarly, insurance sector has also recorded growth on the day. Investors are mainly attracted towards Nepal Life Insurance share that has announced of issuing FPO with the highest premium till date.

Meanwhile, analysts cautioned investors to increase their investment in the current circumstances of the market. “Currently, price of some companies increased up to 10 percent in a single day then decline simultaneously causing hyper fluctuation. It has also increased risk in the market,” they say. They suggest investors to understand that the high market also indicate high risk.