KATHMANDU, July 17: Nepal Stock Exchange (NEPSE) bade farewell to the fiscal year 2024/26 at a positive note with an impressive growth on both the daily turnover amount and the market index on Wednesday, raising hope among investors for the next FY.
In intraday trading, both the daily turnover and market index increased to a four-month high level. On July 16, the daily turnover grew to Rs 14.03 billion from Rs 9.41 billion on the previous day. Last time, the largest single day transaction was recorded at Rs 14.28 billion on March 3.
Similarly, with a whopping rise of 34.61 points, the market index has reached 2,794.78 points. Previously, the NEPSE was recorded at 2,772.10 points on March 9.
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According to stockbrokers, the market was influenced by the banks’ announcement to curtail their interest rates further with the commencement of the next fiscal year.
“At a time when the investors held back their investment plan for the commencement of the new fiscal year, the banks’ initiative pushed them for spontaneous injection of their money at the share market,” said a stockbroker.
Continuing the trend of the past week, a notable rise in the heavyweight shares of banks and financial institutions (BFIs) helped the secondary market to grow. On Wednesday, the development bank index rose 221.30 points and microfinance index surged 94.97 points, while the banking and finance also had their indices increase by 23.76 points and 19.29 points, respectively.
In the last FY, the market hit the highest level at 3,000.81 points on August 15. In the following month, the NEPSE dropped to as low as 2,464.41 points. With an exception that the index reached 2,890.29 points on March 2, the NEPSE hovered between 2,600 and 2,700 points almost for 10 months.
The country’s only share market started to post a ray of hope since Nepal Rastra Bank last week unveiled its monetary policy for the next fiscal year. Through its signature policy, the central bank has announced a number of measures to boost the share market that remained almost stagnated for the past one year.
During FY 2024/25, the market capitalization increased to Rs 4.656 trillion from Rs 3.349 trillion. This gave the investors with capital gains of Rs 1.307 trillion in a year.
