KATHMANDU, September 6: The stock exchange market on Monday gained a whopping 161.94 points after Finance Minister Janardan Sharma expressed his concern on the massively falling secondary market in recent days.
According to the Ministry of Finance (MoF), Sharma telephoned Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari to talk about the impacts of the monetary policy 2021/22 and unified directives related to the secondary market. “Finance Minister Sharma asked NRB Governor Adhikari to solve the problems seen in the secondary market,” reads a press release quoting Sharma.
Until Sunday, Nepal Stock Exchange (Nepse) had been witnessing high volatility in the past few weeks. On Sunday alone, the Nepse underwent a landslide of 108.26 points in its index and dropped below 2,900 points.
Investors who were hard hit by the falling market have been blaming NRB for the situation. They have attributed it to the central bank tightening the noose on large investors in particular, by capping on the margin loans threshold. The investors had even warned to picket the NRB’s head office in Baluwatar if the provision introduced in the monetary policy is not revised.
In the first half an hour of the trading period on Monday, the stock market further plunged by 11 points. Following the government intervention, the market closed at 2,980.78 points.