Despite warnings, Nepse growth continues

The Nepse index at the Nepal Stock Exchange continued is bullish trend this week as well making a historic record as it made a growth of 61.8 points.

The index opened at 818.16 points and reached an all time high of 879.96 points when the market closed in the weekend. This is the highest growth in a week ever recorded at the Nepse floor.

Market regulators including Securities Board of Nepal and Nepal Rastra Bank issued several warnings over the hefty increase, yet the market growth continued week after week. The experts have also warned that such growth would be fatal at this time of political instability and uncertainty.

On the second day of the market, the Nepse dropped to 817.08 points, but bounced back to 827.74 points on the third day and reached 837.92 points on the fourth day before closing at 879.96 points on the fifth day.

Despite the growth, the weekly turnover decreased to Rs 488.9 million with 757,457 unit shares having been traded through 1,636 transactions, against the last week's figure of Rs 595.5 million through the trading of 700,153 shares.

'A' category companies comprised 75.47 percent of the total transaction. The share prices of the financial institutions remained the champions, while those in hydropower group lost.

The commercial banks group posted a growth of 95.89 points while the development banks group posted 9.08 points growth.

The share prices of the hotel, trading and other groups remained constant at 280.95 points, 162.03 points and 818.12 points respectively, not registering a single trading. nepalnews.com ia Sep 23 07

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