NEPSE crosses 600 mark

NEPSE crosses 600 mark
Nepalnews.com, 7-Jul-2007

The Nepal Stock Exchange (Nepse) index made history in its 13-year-long existence when it crossed the 600 mark for the first time on Tuesday. Trade analysts attributed the rise to a continuous rise in share prices caused by the remarkable confidence shown by investors in stock trading.

The Nepse opened at 598.52 points Tuesday morning and ended at over 602 points, with shares of commercial banks and hydropower companies gaining.

According to the Himalayan Times, of the 40 leading scrips traded Tuesday, more than 90 percent of them gained in a range of Rs 1 to Rs 75 per share and only five companies were the losers among them.

The Nepse index has been soaring high for the last six weeks with investors making largely speculative buying amid rumors of persistent growth in share prices.

The Himalayan Times reported that the market has been overheated on speculation that the “financial institutions would soon announce positive annual financial results, as the book for this fiscal year is being closed in a week or so”.

“A rush of gullible and new investors is taking stock trading to a new high these days,” senior official at Nepse told the daily. He, however, warned that the current growth is “not justifiable in accordance with the country’s economic performance and actual financial health of the listed companies”

Terming the current Nepse as a ‘rumour-driven market’, the official also warned that the market could crash any day, if the existing speculation-dominated trend continued