The benchmark index had dropped to 518.55 points on May 17, 2007. Nepse had touched the highest point of 1175.38 points on August 31, 2008, when the market was overheated. [break]
Share analysts say shrinking liquidity in the market and increasing interest rates of bank as compared to the dividend provided by companies are the major factors behind the decline in Nepse index.
“Investors don´t have sufficient capital to invest in the stock market, which can´t flourish without sufficient capital investment,” said Nanda Kishore Mundada, president of Nepal Stock Brokers´ Association. “How can we attract investors to the capital market where rate of return is far lower than existing interest rates offered by banks and financial institutions?” wondered Mundada.
During Sunday´s trading, decline in sub-index of Banking, a dominant trading group, dragged down the Nepse index. Banking group saw its sub-index go down by 2.44 points to close at 487.01 points.
Similarly, the sub-indices of Hydropower and Finance groups fell by 1.16 points and 0.43 points to close at 802.26 points and 519.13 points respectively. However, the sub-indices of Development Bank and Insurance groups gained by 2.04 points and 1.84 points to close at 580.51 points and 576.48 points respectively.
A total 63,795 units of shares and 64 scrips worth Rs 27.79 million changed hands through 1,079 transactions on Sunday. Total market capitalization -- total worth of listed shares -- reached Rs 102.42 billion.
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