Nepse in corrective mood
Kathmandu, December 29:
After a long Bull run, Nepse seemed in corrective mood this week as it continuously dropped for first four days before posting a rise of 16.79 points on Thursday, the last day of the trading.
Nepal Stock Exchange (Nepse), the sole secondary market, index registered a whopping drop of 69.20 points this week from the opening 1055.73 points on Sunday morning.
However, at the closing of Sunday, first day of the trading at the floor, Nepse dipped by 10.08 points to 1045.65 points. On Monday it fell by 27.49 points from Sunday’s closing of 1045. 65 points. Similarly, on Tuesday Nepse further declined by 25.24 points to 992.92 points from the Monday’s closing, while on Wednesday, it dipped by 25.18 points to 967.74 points from Tuesday’s closing. On Thur-sday, Nepse gained 16.79 points to 984.53 points.
This week, commercial banks, development banks, insurance and hydropower group — the market propellers — became the losers and finance group and hotel group emerged winners.
The hotel group flared by 26.40 points to 420.59 points because of the trading of Oriental Hotel, Soaltee Hotel and Taragaun Hotel shares at the floor, where 72 firms’ shares were traded this week. Only three hotels are listed under Hotel group at present.
Due to lack of real sector’s presence in the Nepali capital market, it is dominated by the financial institutions and they are the market propellers. However, yesterday’s directive of Nepal Rastra Bank, the central bank, on margin lending against shares may increase selling pressure at the market that could pull the Nepse down to the size.
Experts claim that the current Nepse is overheated and needs corrective measures to sustain in a long run and be the real barometer of national economy. NRB claims that its new directive will speed-break the current ‘abnornmal’ rise of Nepse.
Similarly, From this week, trading at the floor takes place for three hours from 12 noon to 3.00 pm. Earlier, it used to be only two hours.