The market is observing slowdown in recent weeks as Nepse is replacing paper-based trading with the dematerialized form of trading. Nepse has enforced dematerialized form of trading for seven companies. This means share transactions of these companies will be carried out only in dematerialized form. Nepse plans to enforce full-fledged dematerialized form of trading in a phase-wise manner.Stock analysts say that the enforcement of the new system has created some confusion in the stock market. "These selected companies make impact on the market as they are the top companies in terms of turnover quite often. Many buyers and sellers have not opened their demat account because of which they are unable to buy and sell shares. This has caused benchmark index to go down," a stockbroker told Republica. "Also billions of rupees have been stuck in the primary market."
Insurance group was the highest loser of the week as its sub-index nosedived by 126.3 points to close at 2,172.35 points. Hotels and Hydropower sub-indices shed 32.8 points and 25.71 points, respectively, to close at 1,943.62 points and 2,172.35 points. Manufacturing and Processing group also shed 6.75 points to settle at 1,493.11 points. Banking group, the heavyweight trading group in Nepse, also went down by 5.97 points to end the week's trading at 527.9 points. Development Bank and Finance groups also ended on the red zone as their sub-indices fell by 2.59 points and 1.15 points, respectively, closing at 789.07 points and 529.6 points. Trading group went down by a marginal 0.49 point to close at 206.74 points. 'Others' group, however, went up by 12.92 points to settle at 717.83 points.
A total of 2.62 million units of shares of 157 companies worth Rs 907.58 million were traded in the stock market this week through 6,690 transactions. The turnover is 25.58 percent lower than total turnover of last week.
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