Nepse gains a notable 53.03 points after govt backs off from its new rule of income tax for shares investors

KATHMANDU, June 4: Nepal Stock Exchange (Nepse) on Sunday gained a whopping 53.03 points after the government promised to scrap the new rules of taxation in share transactions that was imposed through the budget announcement last week.

The budget talked about embracing the share transactions under the income tax bracket in addition to the capital gains tax. Dissatisfied by the new rule, the investors turned reluctant to inject their money in the share market, as a result of which the market dipped around 93 points last week. After the investors launched protests on Sunday, the government backed off from its previous decision.

The secondary market opened at 1,866.34 points and closed at 1,919.37 points. With the investors staying in wait and watch condition, the market remained stable for one hour of the commencement of trading.

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The index instantly jumped to the day’s high at 1,925.02 points after the Finance Minister Prakash Sharan Mahat expressed his commitment to call off the rule before it will get approval from the lower house. The market again lost around 26 points in the next few minutes. In the next two and a half hours, the market fluctuated by nominal values.

In the intraday trading, 217 listed companies added to their market values, while only three companies lost their market prices. The sensitive index that measures the performance of the blue chip companies also gained 9.49 points.

All the 13 trading groups had their market prices increased. Non-life insurance, life insurance, hotels and tourism, manufacturing and processing and development banks posted gains of three-digit points. 

The daily turnover amount on Sunday increased marginally to Rs 1.656 billion compared to Rs 1.654 billion on Thursday.

Among individual companies, Shivam Cements had the biggest transactions of its shares worth Rs 158.15 million. IGI Prudential Insurance Limited was the biggest gainer while ICFC Finance Limited Debenture 2083 was the topmost loser.