KATHMANDU, Feb 23: Nepal Stock Exchange (Nepse) on Thursday nosedived 57.74 points to close at 2,022.64 points.

The secondary market opened at 2,080.38 points and fell to as low as 2026.97 points in the first half an hour of the commencement of trading for the day. The market index remained almost flat for the remaining trading hours.

According to stockbrokers, the market was affected largely by Nepal Rastra Bank implementing stringent policies for microfinance companies. In the new rule, borrowers who have taken loans from any bank will not get loans from microfinance companies. Likewise, a microfinance institution that proposes an annual dividend distribution of more than 15 percent must deposit 50 percent of the proposed dividend in the general reserve fund. 

In the intraday trading, 203 companies recorded losses in their market values, while 14 companies registered gains. The sensitive index that measures the performance of blue chip companies also declined by a notable 11.98 points.

The daily turnover, however, stood at Rs 2.522 billion, up from Rs 1.803 billion on Wednesday. The selling pressure of the shares of the microfinance led to a notable rise in the transaction amount, according to stockbrokers. As a result, the average market value of the group fell by around 10 percent.  

All the 13 trading groups were the losers. Of them, microfinance lost 412.02 points while life-insurance, non-life insurance and manufacturing and processing also declined by three-digit points.

Among individual companies, Chhimek Laghubitta Bittiya Sanstha Limited had the biggest transaction of its shares worth Rs 87.07 million. The company also registered as the biggest loser of the day. Nepal Hydro Developers Ltd was the topmost gainer of the day.  

 
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