Nepse index had come down by 3.92 points in the previous week. “The downfall shows the market is in a ´correction´ mode,” Anjan Raj Poudyal, former president of Nepse Stock Brokers Association Nepal, told Republica. [break]
The share index had gone up by 12.59 points in the fourth week of July. According to Poudyal, Nepse index lost value this week after investors, who made significant gains in the past, started selling shares after Nepse index moved into the red trajectory last week.
Experts also say the market is still affected by government decision to convert additional 19 percent promoter´s shares of commercial banks to general shares.
However, Poudyal believes the share index would not go down further as transaction volume has not fallen much. According to Nepse, a total of 2.07 million units of shares of 126 companies worth Rs 676.1 million were traded through 9177 transactions this week. The amount is 7.27 percent higher than the total transaction amount recorded in the previous week.
The Insurance group was the biggest gainer of the week as its sub-index increased by 45.43 to 1177.83 over the week. Similarly, the sub-indices of Production and Development Bank groups increased by 10.27 points and 6.59 points, respectively to 889.1 points and 273.59 points.
Other trading groups, however, posted loss this week. The Hotels group was the biggest loser of the week. The Hotel sub-index fell by 21.21 points. Similarly, the Hydropower and Commercial Banks sub-indices went down by 15.83 points and 7.42 points to 1203.34 points and 523.78 points, respectively. The sub-indices of Others and Finance groups went down by 1.17 points and 0.76 points, respectively, to 648.54 points and 262.34 points.
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