The Nepal Stock Exchange (Nepse) index on Tuesday has registered a historic record crossing the 600 mark for the first time in its 13-year-long existence.
The Nepse opened at 598.52 points Tuesday morning and ended at over 602 points, with shares of commercial banks and hydropower companies gaining. As a result, the total market capitalisation of the day has gone up by Rs 1.17 billion to Rs 162.80 billion from Rs 161.62 billion.
Of the 40 scrips traded Tuesday, more than 90 per cent of them have gained in a range of Re 1 to Rs 75 per share. Universal Finance Ltd, Nepal Bangladesh Bank Ltd, Shree Investment & Finance, Nepal Investment Bank Ltd, and Bank of Kathmandu are the losers among them.
“We have already cautioned the investors. But, they do not seem to pay heed to what we say,” a report in ekantipur.com quoted Rewat Bahadur Karki, general manger of NEPSE. “Some people have spread rumors of persistent growth in share prices. Investors are just running after this rumor.”
The report in ekantipur.com said, since the beginning of the fiscal year, the market reported increment of over 65 billion rupees in market capitalization -- the value of the listed shares. That has happened despite the fact that the economic fundamentals are now weaker that it was then. Investment opportunities for banks, whose shares play determining role in price upheaval, have remained as squeezed as then. The import and export have also dwindled.
As the growth is not supported by corporate or economic fundamentals, the market may face meltdown anytime, analysts said.
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