Market Watch

30th May, 2010 Commentary: Circuit Break (+26.95 points, 5.62%)

Published by Octron on May 30, 2010

After more than a year, finally NEPSE hit circuit break. After agreement upon the extension of CA term for one more year on the late Friday 28th May 2010, the market suddenly saw huge flow of buyers reflecting investor’s confidence. As soon as the market opened, people started buying the established ‘A’ scrip’s; NABIL (+9.4%), SCB (+7.49%), NIB (+10%), SBI (10%), BOK (10%), etc causing its price to rise exponentially finally causing NEPSE index (+22 points, +4%) to hit circuit break.

The market was initially suspended for 15 minutes, when index raised more than 3%. After 15 minutes the market still continued to rise finally hitting the circuit breaker. The trading was suspended for another 30 minutes to stop the bullish trend, but unfortunately the trend continued once again when the market resumed.

Small bank scrips Vibor(+9.97%), Sunrise(+9.76%), NBB (+9.8%), NICB (+9.91%) also joined the uprising. From smaller banks, development banks to big commercial banks all were enjoying the green zone today.

Finally trading for the day had to be halted when NEPSE hit 506.35 points (+26.95 points, 5.62%). After more than a year finally investors are breathing a fresh air. The signal of end of the political deadlock, CA term extension, Maoist coming under agreement table and current government prime minister’s resignation have highly inspired the investors to bring out the stashed cash.

Lets hope the trend continues. Happy Investing !

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