Nepse shed 232.47 points while investors lost around Rs 10 billion from share transaction in Q1 of current FY

Published On: October 28, 2023 08:28 PM NPT By: Republica | @RepublicaNepal

KATHMANDU, Oct 28: Nepal Stock Exchange (Nepse) fell 232.47 points in the first quarter of the current fiscal year.

According to the Nepse, the index stood at 2,097.09 points when it opened for trading on July 17, the beginning of the fiscal year 2023/24. The secondary market closed at 1,864.62 points on October 17, the last day of the first quarter.

Although the market welcomed the new fiscal year with an added value of 47.07 points on the first day, it could not retain its charm for the investors in the successive trading days. As a result, the market went to a straight fall while it plunged as low as 1,851.44 points on October 16.

Over the period, the market suffered the impacts of tightened monetary policy enforced by Nepal Rastra Bank. The higher interest rates, economic slowdown and banks’ reluctance to invest on loans against shares were among the causes that hit the country’s only stock exchange market, according to stockbrokers.

Due to the low confidence of the investors, the daily turnover also declined from more than Rs 2.5 billion to less than Rs 1 billion. The market capitalization also dropped to Rs 2.90 trillion from around Rs 3 trillion, reducing the investors’ assets valuation by around Rs 10 billion during the review period.