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Transactions at the stock market increased by 142 percent

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News item 28-7-2007

With the restoration of peace and subsequent boost of investor confidence, transactions at the stock market increased by 142 percent to Rs 8.36 billion in 2006/07, compared to previous year. According to a report disseminated by Nepal stock exchange (NEPSE), prices of shares of the listed companies reached Rs 21.74 billion during the year, which is 8.96 percent rise over the previous year. NEPSE General Manager Rewat Bahadur Karki, said that total market capitalization of listed companies increased by 92.53 percent to Rs 186 billion during the year. “Change in capital base requirement for commercial banks mainly contributed to remarkable increase in share prices,” said Karki. While the change raised speculations among investors that banks would issue rights share in a grand way, thereby raising their capital gains, the absence of credit rating agency has also made it easier for misleading the investors, said he. Karki said that present rise in share prices was not founded on solid ground. Due to the whopping increment in the share prices of banks, financial institutions, hydropower and development bank groups, NEPSE index almost doubled over the year, says the NEPSE report. The stock market had opened at 386.83 points at the beginning of the fiscal year 2006/07, but by the end of last year, it finished at historic high of 683.95 points. However, transactions of government bonds were recorded at a nominal level, with transaction totaling to mere Rs 36.4 million. Bonds worth Rs 9,250 million were listed in the market for secondary trading.

 

More about increased stock trading at Nepal Stock Exchange

 

Other investment news and articles:

Creating environment for foreign investment (19-4-2007)
improving investment environment (20-2-2007)
Loans for purchasing shares on stock market (17-2-2007)
Narayani Industrial Development Bank listed on the Nepal Stock Exchange  (6-2-2007)
Nepal suffering from capital flight? (1-2-2007)

Nepal Stock Exchange suspends trading of Nepal Credit and Commerce Bank (30-1-2007)
 

 

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