Kathmandu. The secondary market remained positive today. Indicators such as transaction amount and increase in the index have shown that the secondary market is positive.
According to the Nepal Stock Exchange (NEPSE), share prices of 13 companies rose to the circuit label today. A 10 percent increase in the share price of any company on the same day is considered to have reached the circuit label. The share price of any company cannot increase or decrease by more than 10 percent in one day. Nepse does not allow the price of any company to fall more than 10 percent. Similarly, even if it has increased by 10 percent, it will not be allowed to increase more than that.
Today, the share prices of 13 companies have risen by more than 9 percent. Today, the share prices of six companies, Nepal Telecom (NTC), Nepal Bangladesh (NB) Bank, Mahalakshmi Development Bank, Panchakanya Mai Hydropower, Upper Tamakoshi Hydropower and Malungkhol Hydropower Company have risen by 10 percent.
Similarly, the share price of Manushi Microfinance and Tehrathum Power Company has risen by 9.99 percent. Shares of Prabhu Insurance Company rose 9.53 percent, Shree Investment Finance Company 9.43 percent, Liberty Energy Company 9.21 percent, Himal Dolakha Hydropower Company 9.08 percent and National Hydropower Company 9.07 percent.
Why did the price go up?
Rumors that NB Bank is merging with another commercial bank have worked out of the 10 percent rise in share price in the secondary market today. The share price has risen to the circuit label as rumors of a merger between Navil Bank and NB Bank have spread in the secondary market.
NB Bank’s share price had earlier risen in the secondary market due to rumors that it was merging with Nabil Bank. NF Bank’s Bangladeshi partner IFIC is about to sell its shares. The share price of NB has risen on the basis of analysis that the shares were bought by Nepali businessman and investor of Nabil Bank Binod Chaudhary and NB Bank will also merge with Nabil.
There is a natural reason for the increase in the share price of NTC. NTC’s unaudited financial statements for the first quarter, published today, show that its profit has increased by an average of 50 percent compared to the first quarter of last fiscal year. The rise in NTC’s profit was due to the publication of its financial statements.
The share price of Mahalakshmi Development Bank, which has risen by 10 percent, has been rising for a few days now. Another company, Panchakanya Mai, which traded on the circuit label due to price hike, had published its financial statement only today, showing a 112 percent increase in profit as compared to the first quarter of the last fiscal year.
Similarly, Upper Tamakoshi has also published its financial statements today. Tamakoshi has published a profit of Rs. 860 million in the first quarter of the current fiscal year. The rise in profits is also due to the publication of financial statements.