KATHMANDU, Aug 6: Nepal Stock Exchange (NEPSE) on Tuesday plunged with a record-high 145.05 points, while the daily turnover also posted the highest amount at Rs 23.71 billion.
According to NEPSE, it imposed a negative circuit break on share prices of 11 companies in the intraday trading. Seven listed companies including Nepal Finance, Gurkhas Finance, Central Finance Co Ltd, Panchakanya Mai Hydropower, NRN Infrastructure and Development Limited, Shuvam Power Limited and Hathway Investment Nepal Limited faced the largest of 10 percent decline in their market values.
The secondary market had been in a bullish trend for the past few weeks as an impact of the formation of a new government and flexible monetary policy enforced by Nepal Rastra Bank. As a result, the NEPSE index jumped around 800 points over the period.
Nepse up for a fifth consecutive week
According to stockbrokers, Tuesday’s decline in share prices was mainly due to investors offloading their stocks after securing notable profits that they gained in the past few days. The market was also influenced by the financial reports unveiled by banks and financial institutions, which showed a decline in distributable profits of the majority of them.
The market opened at 2,796.38 points and went through a downward graph almost throughout the trading hours to close at 2,651.32 points. The index plunged to the day’s low at 2,646.39 points in the last three minutes before it recovered slightly to close for the day.
The sensitive index, which measures the performance of ‘A’ class companies, also decreased a notable 27.22 points. The daily turnover stood at Rs 23.71 billion, an increase of Rs 1.85 billion compared to the amount on Monday.
All the 13 groups were the losers. Life insurance index shed the largest of 870.14 points, while eight other groups lost three-digit points in their indices.
Among individual companies, only eight were recorded as gainers whereas 233 were the losers. Three Star Hydropower Limited was the topmost gainer.
