Nepal | September 29, 2020

FinMin blames virus outbreak for share market turbulence

Himalayan News Service
Share Now:

Kathmandu, March 12

Finance Minister Yubaraj Khatiwada has said the global outbreak of coronavirus is the root cause of the recent volatility at the Nepal Stock Exchange (Nepse) — the country’s sole secondary market.

Responding to the lawmakers’ concerns during a discussion on the bill to amend the Securities Act, 2007, in the meeting of House of Representatives today, Khatiwada claimed that the recent market fluctuation is a short-term phenomenon.

“We should refrain from coming up with illogical conclusions based on these short-term trends.”

During the discussion, some of the lawmakers alleged that the unexpected recent market movement in the stock market was caused by Minister Khatiwada’s ‘unpopular’ image in the market.

Dismissing the accusation, Khatiwada said, “The share value of the listed companies in the share market is governed by their financial health and government’s policies. A single person cannot affect the share market.”

According to Khatiwada, the share market is a good platform for the general public to grow their investment rather than for the ultra rich.

“The share market provides an opportunity for those with limited and insufficient capital to set up an enterprise to expand their investment,” he explained, adding that however, share investors should be mindful of the market trend and make prudent investment decisions.

During the meeting today, Minister Khatiwada informed that the amendment bill aims to make the securities market more competitive and transparent. “We have brought this bill so that even the ordinary people can participate in the share market. It includes a provision that allows investors to seek margin loans from microfinance companies as well,” he said.

He said the government will better regulate the share market in the coming days by strengthening the role of the regulatory body and making the securities market more competitive and transparent.

After making a strong recovery from Tuesday’s over six per cent plunge on Wednesday, the benchmark index tumbled again by 3.23 per cent or 45.91 points to 1,377.18 points today. While sensitive index slumped by 3.02 per cent or 9.19 points to 295.50 points, float index was down 3.28 per cent or 3.32 points to 97.78 points.

All the subgroups landed in the red today, with the hotels and non-life insurance recording losses of over five per cent.

Altogether 5.69 million shares of 182 companies were traded through 23,205 transactions that amounted to Rs 2.21 billion today. For comparison, 5.63 million shares of 180 firms had changed hands through 23,237 transactions yesterday that totalled Rs 2.22 billion.

A version of this article appears in print on March 13, 2020 of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

1,351 new cases take Nepal’s coronavirus tally to 74,745 on Monday

KATHMANDU: Nepal’s coronavirus tally moved to 74,745 as 1,351 new infections were reported in the last 24 hours. As many as 742 people that had earlier contracted Covid-19 tested negative for the infection as per the Ministry’s latest data. So far, 54,640 people have recovered from the diseas Read More...

Worldwide coronavirus cases cross 32.97 million, death toll over 994,000

At least 32,979,301 people have been reported to be infected by the novel coronavirus globally and 994,217 people have died, a Reuters tally showed. Beijing on Monday called on importers to shun frozen food from countries suffering from severe novel coronavirus outbreaks after several cases Read More...

Baitadi district

Baitadi jail facing challenges due to overcrowding

BAITADI: District Jail, Baitadi has been facing problems in the management since it has been housing more than twice the number of jailbirds to its capacity. The jail is currently housing 58 persons including 31 inmates and 27 detainees. However, the prison only has the capacity to accommodate Read More...

Kathmandu Valley records 817 infections on Monday

KATHMANDU: Kathmandu valley logged over 800 additional cases of coronavirus infection in the last 24 hours. As per the Health Ministry’s latest report, 817 new infections surfaced in the valley today, which 60.47 per cent of the total caseload. Read Also: 1,351 new cases take Nepal’s coro Read More...

Four Covid-19 fatalities recorded on Monday, tally shifts to 481

KATHMANDU: Four people passed away from Covid-19 related complications in the last 24 hours, with which the nationwide death-toll has moved to 481. Two women and two men lost their lives due to this infection, the Health Ministry’s latest update showed. Read Also: 1,351 new cases take Nepal Read More...

Royal Bengal Tiger of Chitwan National Park

Mahout killed in tiger attack in Chitwan National Park

CHITWAN: A man has been killed in a tiger attack in an intermediate community forest of Chitwan National Park today. Previously, a person was killed by a tiger two days ago on Saturday in the western part of Chitwan district. The deceased has been identified as Babana Chaudhary (55) of Ratnanagar Read More...

Coronavirus , vaccines, vaccines trails

Inovio's potential COVID-19 vaccine trial on partial clinical hold

LONDON: Inovio Pharmaceuticals Inc said on Monday the US Food and Drug Administration had placed a partial clinical hold on the company's planned mid-to-late-stage trial of its experimental coronavirus vaccine candidate. The company said the pause was not due to any side effects in its early-stag Read More...

Ronaldo double earns point for 10-man Juventus at Roma

ROME: Cristiano Ronaldo’s second goal of the night rescued a 2-2 draw for 10-man Juventus away to AS Roma in Serie A on Sunday, after Jordan Veretout had twice put the capital club in front. Veretout and Ronaldo netted penalties after both teams were penalised for handball, and the French midfield Read More...