KATHMANDU, JUNE 11
Hopes for recovery in the secondary following the announcement that the Ministry of Finance had formed a study committee to look into the issues plaguing the share market were dashed as share investors sought to cut their losses in the subsequent trading days.
Nepal Stock Exchange (Nepse) index fell by 1.47 per cent or 30.54 points to retreat below the threshold of 2,050 points week-on-week between June 6 and 10. The sensitive index decreased by 2.78 per cent or 11.23 points to 392.25 points, while the float index also fell by 1.13 per cent or 1.16 points to 141.22 points over the review week.
Altogether 20.50 million shares were traded during the week, an increase of 16.09 per cent compared to 17.66 million shares that had exchanged hands last week.
The market witnessed a turnover of Rs 6.59 billion in the review period compared to total traded amount Rs 6.20 billion the previous week.
The secondary market opened on Monday with the benchmark index at 2,078.70 points. It had shed 12.88 points to end the day at 2,065.82 points. The market dropped further by 45.59 points on Tuesday to close at 2,020.23 points. On Wednesday, the Nepse index snapped its losing streak by advancing 60.22 points to close at 2,080.45 points following the finance ministry's decision to form a study panel to study the market.
However, the optimism faded quickly as the market remained southbound for the rest of the trading week on profit-booking.
Nepse fell by 17.64 points to 2,062.81 points on Thursday and dropped by 14.65 on Friday to settle at 2,048.16 points for the week.
Meanwhile, only two subgroups managed to land in the green this week by a slight margin.
Microfinance gained 1.17 per cent while trading inched up by 0.47 per cent.
The remaining 11 sub-indices recorded losses. Banking declined the most by 2.67 per cent or 38.59 points, followed by manufacturing and processing that lost 2.11 per cent or 105.53 points, development banks by 2.03 per cent or 73.28 points.
Similarly, hotel and tourism subgroup fell by 1.08 per cent or 29.21 points, others by 1.62 per cent or 24.77 points, investment by 1.35 per cent or 0.91 point, finance by 0.88 per cent or 13.45 points, life insurance by 0.84 or 82.61 per cent, hydropower by 0.66 per cent or 15.97 points, non-life insurance by 0.28 per cent or 23.64 points and mutual funds by 0.27 per cent or 0.04 points.
A version of this article appears in the print on June 12, 2022, of The Himalayan Times.
