The market is on a losing streak for the past few weeks due to political unrest in Tarai. The market, which had hit record high after Nepal Rastra Bank (NRB) decided to increase the minimum paid-up capital of the banks and financial institutions, started taking downward course after the United Democratic Madhesi Front (UDMF) spearheaded protest in Tarai, opposing promulgation of new constitution. Investors' sentiment further deteriorated after India imposed undeclared economic blockade.
“The market was already going down after the dissenting parties launched protest in Tarai. Now many investors, who are worried with the current situation, are in a mood to sell their shares to avoid further losses,” a stock broker told Republica, requesting anonymity. “Our economy is sliding as the stock market is the reflection of real economy. It seems that political parties do not care about the country's economic situation.”
Most of the trading groups ended on the red zone this week. Insurance group was the biggest loser as its sub-index plunged 131.7 points to close at 4,326.05 points. Hydropower and Banking groups followed suit with their sub-indices going down by 55.6 points and 32.83 points, respectively, closing at 1,881.86 points and 957.19 points. Development Bank and Hotels groups also shed 18.99 points and 11.45 points, respectively, to close the week at 894.69 points and 1,765.42 points. Manufacturing and Processing, and Finance groups also ended 6.2 points and 4.65 points lower at 546.7 points and 1,864.89 points, respectively. 'Others' group, however, bucked the trend, gaining 3.53 points to close at 757.77 points. Trading group remained unchanged at 207.97 points.
A total of 2.44 million units of shares of 150 companies worth Rs 1.24 billion were traded in the market through 12,615 transactions this week. The turnover is 63.78 percent higher than total transaction amount recorded last week. Nepal Life Insurance Company topped the list of listed companies in terms of turnover (Rs 88.1 million), while Siddhartha Equity Oriented Scheme remained at the top in terms of number of traded shares (174,000 units). Similarly, Api Power Company Ltd was at the top in terms of number of transactions (4,883).
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