NEPSE Index Surpasses the Psychological Mark of 2200, Market Shows Significant Growth

The NEPSE index successfully closed above the psychological mark of 2200 on Thursday. The index increased by 29.21 points, reaching 2204.61 points. The rise in the index was supported by a substantial trading volume, with more than 7 billion rupees in shares traded on this day.

Index Status

- NEPSE Index: 2204.61 (Increase: 29.21 points, 1.34%)

- Total Trading Amount: NPR 7,080,698,146.05

- Total Shares Traded: 20,237,780

- Advancing Stocks: 154

- Declining Stocks: 78

- Unchanged: 12

Market Analysis

- Rising Index: The NEPSE index closed at its highest level in nearly a year. The last time the market closed around 2200 points was on July 24, 2023.

- High Trading Volume: The trading volume was the highest in about six months. On January 20, 2024, the market saw trading worth NPR 7.52 billion.

- Economic and Political Environment: Investor confidence has increased with the formation of a coalition government between the two major parties, fostering a belief that economic and political issues will be addressed.

- Role of Finance Minister: There is speculation about Bishnu Poudel returning as Finance Minister. Investors believe that his tenure would lead to better coordination with the central bank and address investor concerns.

- Monetary Policy: Investors anticipate that the upcoming monetary policy will include flexible measures from the central bank.

Suggestions and Future Strategy

- Investment Strategy: Focus on companies with strong financial indicators and good dividend potential, and hold investments for the long term.

- Policy Reforms: Remove policy barriers such as limits on share collateral loans and high risk weights.

- Role of Banks: Banks should create a conducive environment for lending in the stock market