Nepse index plunges two per cent

Kathmandu, December 5

The Nepal Stock Exchange (Nepse) index plunged two per cent, or 22.80 points, today to end the day at 1,118.19 points, as banks and financial institutions started increasing interest rates on deposits parked by individuals.

“Following hike in deposit rates, lending rates are expected to soar. This speculation has hit investor confidence,” said Uttam Aryal, chairman of Investors Association of Nepal.

In line with the Nepse index, the sensitive index, which measures the performance of class ‘A’ stocks, also fell 2.02 per cent, or 4.91 points, to close at 237.78 points. The float index, which measures the performance of shares that were traded at the bourse, too shed 1.91 per cent, or 1.58 points, to rest at 81.12 points for the day.

Among the 11 sub-indices in the market, 10 subgroups ended the day in red today, while trading subgroup did not witness any trading.