The offices of two dozen stockbrokers cast a deserted look on the first trading day of the week as no investor approached them to trade their securities. [break]
Talking to myrepublica.com, Nanda Kishore Mundada, president of Nepal Stock Brokers´ Association, said not a single investor approached the stockbrokers on Sunday- the first day of the week-long stir.
“Investors didn´t approach us with orders today. Though we can´t openly support the stir, we cooperated with them as they had requested us not to take any order,” he added. Mundada, who is also the proprietor of Shree Krishna Securities, said stockbrokers meet at least 100 investors every day and record 50 transactions in an average every day.
“Commission income of stockbrokers dropped by around 50 percent in the first six months of current fiscal as compared to the figures of last year,” Mundada added.
Total turnover of stocks in Nepse during the first six months of the current fiscal year was limited to Rs 8 billion, significantly down from Rs 21.7 billion recorded during the same period last year. Nepse index also dropped below the 500 points mark from 1175 points recorded in September last year.
Meanwhile, stockbrokers met with Nepse Shankar Man Singh, general manager of Nepse, on Sunday and apprised the latter that they would not be able to open their office during the agitation of investors.
On behalf of Nepse, Singh also informed Finance Secretary Rameshwore Khanla about the disruption in stock transactions at Nepse. Singh informed myrepublica.com that Khanal assured him that he would request Nepal Rastra Bank to soften the policy on margin call system by issuing loans upto 70 percent of total value of shares, which is the major reason behind the slackness in stock trading.
“We have nothing to do with the demands put forth by the investors. We have informed concerned authorities about the situation,” Singh added.
Currently margin lending by banks and financial institution stands at around Rs 17 billion.
Investors are on the warpath for a week, alleging that the government is not doing anything to rejuvenate the stock market even as the Nepse index has dropped to the lowest mark in over three years.
Ordinary Investors Association, Nepal Investors Forum and Securities Investors Association are jointly staging the protest to press the government announce concrete measures to revive the stock market.
As a part of their week-long protest, the investors did not buy or sell stocks on Sunday. They would boycott trading on Monday as well.
They have also announced to close the main server of Nepse system if they did not come up with concrete measures at the earliest. The investors have announced that they would go to the extent of boycotting transactions for indefinite period if their demands were not addressed by Thursday.
“We will be compelled to boycott transaction for indefinite period if our demands are overlooked,” said Deepak Karki, president of Ordinary Share Holders´ Association.
They have been demanding the government to soften its policy in margin lending, increase the number of stock brokers and suspend the process of transferring 19 percent promoters shares to ordinary shares among others.
Agitation improper: Nepse
Nepal Stock Exchange (Nepse) has expressed serious concern over the ongoing agitation called by share investors.
Issuing a press statement on Sunday, Nepse termed the protest as an improper act and called on the investors to cooperate with the Nepse to resume smooth trading at the secondary market.
It also said such agitation would bring negative impact on the interest of investors.
prabhakar@myrepublica.com
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