Insurance and Microfinance scrips experiencing abnormal growth in short term; taking caution before investing is advised

Tue, Apr 17, 2018 9:45 AM on Latest, NEPSE News, Stock Market,

NEPSE index, yesterday and today has experienced exponential growth. Today the index climbed 33.61 points or 2.59% on top of yesterday’s 17.42 points, which (same as yesterday) is accounted by the rise in Insurance and Microfinance scrips. The market had opened at 1,297.58 points today, which climbed up to 1,331.17 points and closed in green.

The yesterday’s growth was suspected to be hyped by the nearing end of this fiscal year. Continuing the trend, today the market has grown even further. Today, the market closed with a whopping turnover of Rs. 95.4 crore. A total of 1,895,506 shares were today via 10,031 transactions. The growth is anticipated, but it is happening in a very short span of time because investors are suggested to be cautious before pouring your money. Huge growth in short period of time might also lead to similar downfall.

Surya Life Insurance Company Ltd. (SLICL) stood ahead in terms of turnover as more than 5.9 crore worth shares were traded. Likewise, Dev Bikas Bank Ltd. Promoter Share (DBBLPO) stood at top in case of number of shares traded as 1.31 unit shares were exchanged.

Likewise, Mahila Sahayatra Microfinance Bittiya Sanstha Ltd. (MSMBS) was the top gainer of the day as it gained 10% on its price and closed at Rs. 770. Similarly, the 18 other scrips on top gainers list also experienced a growth of more than 9%. Among the top gainers we can see that most of these scrips belongs to Microfinance Companies and Insurance. Similarly, Sahayog Bikas Bank Limited (SBBLJ) was the top loser of the day losing 4.58% on its price closing at Rs. 208.

The sub-indices for all sectors except Trading increased today and landed in green zone. Among all, the insurance and microfinance sector have experienced the highest growth of 360.43 and 120.11 points respectively. The only sector landing in red today, trading sector, lost 5.57 points.