Kathmandu, May 13

Nepal Stock Exchange (Nepse) index reached the daily market movement limit of two per cent in 39 minutes of opening, causing the trading to be suspended for the rest of the day today.

Merely 10,526 shares of 74 firms changed hands through 211 transactions worth to Rs 3.6 million today, while Nepse index was southbound throughout the trading period to close at 1,201.57 points, down 24.58 points.

Nepse resumed trading from yesterday after a 50-day break, as per the direction of the Securities Board of Nepal (SEBON). According to the new rules, trading has been limited to just two hours per day from 11:00am to 1:00pm for the time being. Moreover, the daily movement limit for the listed firms has been capped at three per cent and for the benchmark index at two per cent.

The trading in the country’s sole secondary market had been suspended within an hour-and-a-half yesterday after the Nepse index dropped by two per cent.

Uttam Aryal, chairperson of Investors Association of Nepal, said as only electronic trading is being carried out at the moment, only a limited number of investors are participating, which in turn has distorted the market.

“If this situation persists, the benchmark index will drop below the psychological threshold of 1,000 points,” he warned, adding that the concerned stakeholders should close the share market till the lockdown is in place for the benefit of investors.

In line with Nepse, sensitive index also plunged by 2.01 per cent or 5.35 points to 260.32 points, while float index fell by 2.01 per cent or 1.74 points to 85 points.

Stockholders of commercial banks were the biggest losers today, as the sub-index slumped by 2.4 per cent or 25.65 points to 1,041.50 points. Similarly, hydropower subgroup dropped by 1.96 per cent or 18.03 points to 899.67 points and life insurance subgroup slipped by 1.96 per cent or 129.97 points to 6,509.45 points.

All subgroups, except mutual funds, landed in the red today. The mutual funds subgroup did not record any transaction today.

None of the listed companies witnessed any gain today, while the share value of Laxmi Bank and Taragaon Regency Hotel fell by the maximum daily limit of three per cent to close at Rs 194 each.

A version of this article appears in e-paper on May 14, 2020, of The Himalayan Times.