NEPSE, the indicator of investor confidence, had surged significantly for the last few days to end at 749.11 points at the end of Wednesday´s trading. With the announcement of the new budget with policies favorable for the development of the capital market, NEPSE had continued bullish till Wednesday.
However, share analysts said they don´t see any reason behind the fall in the index. “NEPSE´s drop in Thursday trading is a result of continued surge in the index in the past few days. Normal fluctuation in share index is common in a capital market,” said a stockbroker.
The double digit fall in sub-indices of major trading groups dragged NEPSE down on Thursday. Banking, the dominant group in NEPSE, lost 16.39 points to 764.48 points whereas the Development Bank group sub-index fell 8.55 points to close at 764.01 points. Similarly, the Hydropower and Finance groups´ sub-indices also dropped 16.38 and 4.89 points to end at 1,028.43 and 692.19 points respectively. Insurance group suffered a loss of 14.1 points and dropped to 724.89 points.
However, the Hotel and Insurance groups saw marginal 0.57 and 0.9 points gains in their sub-indices.
In total 631,164 shares worth Rs 153.7 million were traded through 733 transactions Thursday. Total market capitalization stood at Rs 503.35 billion.
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