The trading floor of Nepse remained open for only three days this week as the government had announced Sunday and Monday as public holiday to celebrate promulgation of new constitution.Against the expectation that the stock market will reach to a new height after the promulgation of new constitution, the market remained highly volatile this week. The benchmark index nosedived 39.94 points on Tuesday -- the first trading day of the week. The market bounced back the next day, gaining 27.28 points.
The fear stemming from news reports that India has imposed trade embargo to show its support toward agitating Madhesi parties triggered panic selling on Tuesday. However, the market bounced back the next day as investors concluded that India has not imposed such embargo yet. Nepse slid 6.5 points on Thursday as protest of Madhesi parties continued to hog headlines.
"The market remained volatile throughout the week. There were news reports about India sealing its border points. Some reports refuted such claims," Narendra Sijapati, former president of Stock Brokers Association of Nepal (SBAN), told Republica. "Such volatility is affecting the market. Investors get worried whenever there are news reports about escalation of violence. Similarly, even small positive developments make them happy."
Except Manufacturing and Processing, all trading groups ended on the red zone this week. Manufacturing and Processing gained 8.87 points to close at 2,042.65 points. Insurance was the biggest loser of the week as its sub-index shed 115.61 points to end the week's trading at 5,035.81 points. Hydropower group followed with its sub-index falling by 60.17 points to close the week at 2,046.78 points. Banking, the heavyweight trading group in the secondary market, also logged loss of 25.42 points to close at 1,115.35 points. Sub-indices of 'Others' and Hotels groups also plunged 21.14 points and 19.05 points, respectively, to settle at 765.99 points and 1,925.28 points. Development Bank and Finance sub-indices fell by 12.6 points and 1.56 points, respectively, to close at 952.05 points and 563.27 points. Trading sub-index, however, remained unchanged at 206.99 points.
A total of 2.63 million units of shares worth Rs 163.09 million were traded in the market this week.
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