By CK Khanal
Kathmandu, Nov. 26: The benchmark capital market index NEPSE has reached near the highest ever record of the index in 2016 as the index recorded a major increment of 3.57 per cent on Wednesday.
The index that opened at 1,810.11 points in the morning increased by 64.70 points to close at 1,874.81 points in the afternoon when the transaction closed for the day.
With this increment, the index had reached just 6.64 points below the highest ever record of the index at 1,881.45 on July 27, 2016. This position of the index is third highest ever after July 27 (1,881.45 points) and July 28 (1,877.93 points) in 2016.
The index had also increased by 29.68 points on Tuesday after making a nominal correction of 2.38 points on Monday. Before Monday, it had increased by 145 points in regular increment for eight consecutive days.
Analysts and investors have said that no possibility of immediate bearish trend in the index had been shown as of now as there was no single factor that may cause decline in the index.
Rajan Lamsal, general secretary of the Nepal Investors Forum (NIF), said that the index was likely to break the highest-ever record of 1,845.45 on Thursday
He said that the market was likely to continue the increasing trend though the index might take correction of some points after the increment. High liquidity in the banking sector and lack of investment environment were major factors for the current rise in the index, he added.
Lamsal said that share prices of banking sector had just to increase and this sector could lead for further increase in the NEPSE index.
Share market trend analyst Manoj Budhathoki said that this time was for the upward trend in the index. “When we analyse the trend of NEPSE index there used to be alternate cycle of upward and downward trend in the index. After peak points of 2016, the index declined for more than three years and now it had started increasing and it may continue for next few years,” Budhathoki said.
He said that as per the profitability in banking sector, there is still room for the increase in the share prices of banking sector which could contribute for the current increasing trend.
He said that there was no possibility of sudden crash in the market as the growth of most of sectors was justifiable as per the performance of the companies under the sector.
Bhim Panta, a share market investor, said that he was optimistic for further rise in the index as almost all factors were supporting for the rise in the index.
In today’s transaction, the stock exchange traded 14,513,481 unit shares worth Rs. 5.03 billion of 196 companies in 41,026 transactions.
On Wednesday, sub-indices of all sectors except hotels recorded increasing trend. In today’s transaction sub-indices of banking and development bank also recorded significant increment of 40.4 points and 29.18 points respectively.