Nepal Stock Exchange (Nepse) index plunged 21.43 points to close at 1,318.22 points last week, as the government’s policy and programmes failed to address the issues related to the country’s only stock exchange market. In addition, uncertainty among investors about the possible review in the tax structure that the government is likely to introduce through the budget on May 29 put off investors.

The market that opened at 1,339.65 points on Sunday declined by a marginal 0.46 points to close at 1,339.19 points. On Monday, the market slid 2.06 points and closed at 1,337.13 points.

The market continued to shed points, dropping 4.31 points, 4.55 points and 10.05 points on Tuesday, Wednesday and Thursday respectively. Consequently, the market closed with a downfall of 1.59 percent in the overall trading days.

Stockbrokers attributed the fall in Nepse to the government’s recently announced policy and programmes, which failed to provide insights on ways to boost the stock exchange market. “In addition, many investors are now in a wait and watch mood considering the possible review in taxes such as capital gain tax or value added tax on investors’ commission that will likely be addressed in the upcoming budget” said a stockbroker under condition of anonymity.

The sensitive index that measures the performance of Group ‘A’ companies also went down 4.41 points to close at 277.89 points with fall in Nepse of majority of trading groups, including commercial banks.

Along with a fall in the market index, the average value of shares listed on the stock market also downsized by Rs25.11 billion, as the market capitalisation reached to Rs1,547.12 billion from Rs1,572.23 billion over the week.

Except microfinance and trading, the remaining eight groups witnessed downfall in their indices. Insurance lost the largest of 170.05 points to close at 6,787.9 points. Index of development bank fell 32.58 points, hydropower 26 points, commercial banks 22.93 points, hotels 15.32 points, finance companies 5.47 points, ‘others’ 3.31 points and manufacturing fell 0.57 points.

Of the two gainers, manufacturing and trading added up 21.06 points and 2.96 points respectively.

Of the individual companies, promoter shares of Nepal Investment Bank led in terms of both transaction amount and number of traded shares. The bank witnessed turnover of its promoters’ shares worth Rs228.5 million out of 396,000 units. 

Likewise, Swarojgar Laghubitta Bikas Bank saw transaction worth Rs69.97 million of its shares to finish in second place. It was followed by Laxmi Bank, Kalika Microcredit Development Bank and Nepal Bank Limited.

Last week, stocks of 183 listed companies were traded. Despite a fall in market index, the transaction amount increased 77.71 percent to Rs1.92 billion. The traded number of shares also increased to 4,137,430 units from 2,329,440 units.