KATHMANDU, Sept 20: Nepal Stock Exchange (Nepse) on Monday nosedived 114.02 points to close at 2,698.24 points after the government passed the revised budget through parliament.
With a fall of three digit points, Nepse has gone below 2,700 points in the past five months. On April 22, Nepse crossed this benchmark with the commencement of the Nepali New Year.
Nepse hits 2-year high after week's broad surge
The Nepse has been undergoing volatility in the past few weeks after Nepal Rastra Bank tightened noose on margin lending by the banks and growing pressure of liquidity in the country’s banking system. While the central bank has capped the margin loans threshold, the banks’ interest rate on loans has gone into double digits.
Two weeks ago, the country’s only secondary market observed a landslide of 108.26 points. On the next day, the stock exchange market gained 161.94 points after Finance Minister Janardan Sharma in a telephone conversation with NRB Governor Maha Prasad Adhikari expressed his concern about a massive fall in the secondary market.
Along with a landslide in the index, volume of stock transactions also witnessed a heavy decline on Monday. The market transaction that once crossed Rs 21 billion has shrunk to mere Rs 5.19 billion on Monday trading.
The entire 13 sub-groups landed on red. The index of life insurance companies fell by the largest of 800.06 points.
