NEPSE Index Increases by 3.31% This Week

Last week, the NEPSE index stood at 2051 points, and this week it closed at 2119 points. The NEPSE index increased by 3.31% over the week.

Weekly Highlights:

- Sunday: The market decreased by 14.83 points.

- Monday: The market increased by 16.29 points.

- Tuesday: The market hit the circuit breaker twice, reaching 2162 points before finally closing 47 points higher at 2100.

- Wednesday: The market increased by 3.79 points.

- Thursday: The market increased by 15.47 points, closing at 2119 points.

The primary reason for this increase was the political realignment. The market hit the circuit breaker twice on Tuesday after an agreement between the Nepali Congress and the UML on power-sharing was reached on Monday night. However, the market stabilized in the afternoon after Prime Minister Prachanda announced his intention to seek a vote of confidence.

Weekly Trading Volume:

- Sunday: NPR 3.60 billion

- Monday: NPR 2.99 billion

- Tuesday: NPR 4.57 billion

- Wednesday: NPR 5.08 billion

- Thursday: NPR 6.48 billion

Top Trading Companies:

- NRN Infrastructure

- Nepal Finance

- Mahalaxmi Development Bank

- Shangrila Development Bank

- Manjushree Finance

- Shine Resunga Development Bank

- ICFC Finance

Excitement in Commercial and Development Banks:

The commercial sector saw the highest increase of 9.80% this week, driven primarily by the significant price increase of Salt Trading Corporation, which rose by 10.7%. The rise in Salt Trading's price was mainly due to an increase in salt prices.

Similarly, the development bank sector index increased by 8.88%. Investors and traders shifted their focus to the development bank sector after booking profits in the microfinance and finance sectors, which had already seen significant increases.

Development banks are considered 'high-cap' companies compared to finance or microfinance institutions, meaning the growth rate in the development bank sector may not match that of the finance or microfinance sectors.