Nepse at low, shares still traded
KATHMANDU: The plunging Nepse index has not discouraged share transactions as the number of shares being traded is still encouraging. Nepse dropped today as well but the number of transaction saw encouraging growth.
Nepse dropped by 10.39 points to 671.15 points from Thursday’s closing of 681.54 points. Nepse had plunged by 28.28 points to 681.54 points from last Sunday morning’s opening of 709.82 points to close at 681.54 points on Thursday — the last trading day in the domestic secondary market.
Except finance companies and insurance companies sub-groups, all the other sub-groups indices plunged to pull Nepse down. However, the total number of share-unit transactions did not see a remarkable drop as today 100,516-unit of shares — through 1,021 transactions — were traded.
In the fiscal year 2002-03,
the secondary market witnessed some 2.42 million unit of shares traded and that tripled in the fiscal year 2003-04 to 6.46 million-unit shares. The fiscal year 2004-05 was also encouraging in terms of number
of shares traded as that
year some 18.43 million-unit shares were traded. It was also triple than the year before.
However, the secondary market did not perform well and investors’ confidence dropped to a low resulting in lesser number of shares being traded in the fiscal year 2005-06. That year observed only 12.22 million shares traded. It was more than 30 per cent lower than a year before. But again the number of shares being traded started picking up. In the year 2006-07, some 18.14 million shares were traded and that jumped to 28.59 million in the fiscal year 2007-08.
The year 2008-09 saw the largest number of shares traded — 30.54 million-units — as Nepse also went up to 1000-point mark when the market rallied. This fiscal year also, the number of shares being traded is encouraging despite Nepse plunging below the 700-point mark twice — last week and a couple of months ago.