In addition to nosediving by 7.98 points on Sunday, to finish at 649.04, the NEPSE index lost 8.88 points, or 1.37 percent, to come down at 640.16 points on Monday.
The index, a barometer for gauging investors´ confidence, has been on a downward spiral for the last six months, even though its listed companies have reported satisfactory quarterly results to the Securities Board of Nepal, the country´s securities market regulator.
According to the president of the Broker Association of Nepal, Nanda Kishore Mundada, the NEPSE index fell so much in the last two days because of the decrease in the share prices of commercial banks, development banks, and finance and insurance groups- their shares make up 90 percent of the total number of share transactions conducted on the NEPSE.
The stock indices of commercial bank groups and development bank groups slid by 7.54 points and 6.65 points, to settle at 643.85 points and 816.9 points, respectively, on Monday. Similarly, the indices for hydropower and finance groups also decreased by 3.74 points and 14.89 points, to finish at 854.32 points and 721.83 points, respectively. Insurance and others groups also saw drops, by 7.49 points and 11.75 points, to 640.98 points and 587.49 points, respectively.
The Sensitive Index, which represents the transactions of the listed category ´A´ companies, lost 2.03 points, to reach 171.06 points. The Floated Index, which represents the index for ordinary shares floated every day for transactions in the share market also went down marginally, by 0.72 points, to 62.63 points.
While share analysts say that the current uncertain political climate in the country is the major cause behind the slowing capital market, Mundada points to more reasons for the slide, in addition to political problems.“
"The impending flow of ordinary shares in the capital market shares through Initial Public Offerings (IPO) and rights shares, which will be announced soon by different companies, also pushed down the share prices," Mundada told Republica. He added that trend of selling shares when the prices are down also brought down the share prices.
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