Nepse index posts loss of 0.65pcNepal Stock Exchange (Nepse) index shed 8.8 points to close at 1,339.65 points last week, as investors who failed to update their ‘Know Your Customer’ form at stock firms were barred from carrying out any transactions.
Nepal Stock Exchange (Nepse) index shed 8.8 points to close at 1,339.65 points last week, as investors who failed to update their ‘Know Your Customer’ form at stock firms were barred from carrying out any transactions.
On Sunday, the market remained closed to mark ‘Bhoto Jatra’, a public holiday. The market that opened at 1,348.45 points on Monday declined 10.28 points to close at 1,338.17 points. On Tuesday too, the market slid 4.32 points and closed at 1,333.85 points.
The market however gained 4.16 points and 1.64 points on Wednesday and Thursday respectively. Consequently, the market closed with a downfall of 0.65 percent by the end of the trading week.
Stockbrokers attributed the fall in Nepse after investors failed to update their related information at the stockbrokers and were subsequently barred from carrying out any transactions. “By implementing the Money Laundering and Prevention Act in the sector, the regulator had asked stockbrokers to not take purchase and sales order from investors who failed to update their information by last Tuesday,” said a stockbroker under condition of anonymity. “Also, many other investors are in wait and watch mood, citing the upcoming government’s annual budget announcement that is scheduled for May 29.”
The sensitive index that measures the performance of Group ‘A’ companies also went down 2.29 points to close at 282.3 points as majority of the trading groups posted losses.
Along with a fall in the market index, the average value of shares listed on the stock market also downsized by Rs10.11 billion, as the market capitalisation reached to Rs1,572.23 billion from Rs1,582.34 billion over the week.
Of the 10 trading groups, six witnessed downfall in their indices. Insurance lost the largest of 53.81 points to close at 6,957.95 points. Index of development bank fell 25.88 points, finance companies 11.94 points, hydropower 10.72 points and commercial banks 10.66 points and microfinance fell 9.39 points.
Out of the four gainers, manufacturing added 30.94 points, hotels added 24.75 points while ‘others’ and trading added 5.25 points and 3.72 points respectively.
Of the individual companies, Siddhartha Bank Limited led in terms of both transaction amount and number of traded shares. The company witnessed turnover of its shares worth Rs70.18 million from 211,000 units of shares.
Likewise, Womi Microfinance Bittiya Sanstha finished in second place by recording transaction of its shares worth Rs Rs45.95 million stood. It was followed by Siddhartha Insurance Limited, Standard Chartered Bank Limited and Nepal Life Insurance Company.
Last week, stocks of 176 listed companies were traded. Along with fall in market index, the transaction amount plunged 45.96 percent to Rs1.08 billion.
The traded number of shares also fell to 2,329,440 units from 4,812,770 units.