Amid political uncertainty, Nepse, the barometer of investor confidence, has dropped over 33 points in the last seven trading days, which is a testimony of eroding confidence of investors in capital market.
Stock analysts said the announcement of fresh protests by the main opposition UCPN (Maoists) is one of the key factors behind the downfall of the benchmark Nepse.
“The announcement of book closure by different companies listed in Nepse and preparation for general assembly by the companies also contributed to the decline in share prices in the secondary market,” states a press statement issued by Nepal Stock Exchange on Sunday. “We can´t term this continued downfall in share prices without significant changes in the financial and technical position of the listed companies a natural phenomenon.”
All trading groups, except the Insurance group, lost their sub-indices on Sunday´s trading. Banking, a key trading group in the secondary market, saw a decline of 3.02 percent or 16.67 points to settle at 535.52 points. Standard Chartered Bank, Bank of Kathmandu, Siddhartha Bank, Global Bank, Himalayan Bank, Machhapuchhre Bank, Nabil Bank and Nepal Investment Bank were among the major losers.
Similarly, Development Bank and Finance groups also suffered a loss with their sub-indices shedding 7.52 points and 7.32 points to finish at 639.3 points and 606.88 points respectively. Others group also dropped by 3.52 points to 625.05 points. However, Insurance group gained nominally by 0.05 points to close at 606 points at the end of the trading.
A total 219,125 units of shares and 62 scrips worth Rs 84.20 million changed hands through 877 transactions in Sunday´s trading. The total market capitalization -- total worth of listed shares - has reached Rs 399.69 billion.
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