Nepse slips 34 points in two days

Published On: August 3, 2016 01:30 AM NPT By: Republica

KATHMANDU, Aug 3: Nepal Stock Exchange (Nepse) shed a total of 34.11 points in last two trading days of the week to close at 1,826.47 points on Tuesday.

While the benchmark index fell by 15.17 points on Monday, it lost another 18.94 points on Tuesday.

Stock brokers say that some fall in share prices is obvious. "The market has been bullish for nearly a year now. Some correction is obvious as it helps to stabilize the market," Bishnu Raj Ojha of Dipshikha Dhitopatra Karobar Company Ltd -- a brokerage firm - told Republica. "One of the reasons behind drop in Nepse index in the past two days is the profit-booking mentality of investors who want to cash in on the rising share prices.

However, the market has not gone down significantly to trigger a sell-off," he added.

However, some blame the preparation to form a new government under the leadership of CPN (Maoist Center) leader Pushpa Kamal Dahal as the reason behind falling share prices.

“Earlier, the market had tumbled after the then Maoist leader Baburam Bhattarai termed stock market as a 'gambling house'. There is not so positive perception of investors toward the Maoists. The recent fall is also due to weak sentiment of investors," Ravi Oli, a stock market investor, said.

All trading groups, except Manufacturing and Processing, ended on the red zone on Tuesday. Insurance group registered the highest loss as its sub-index dipped 146.28 points to close at 8,892.34 points. Hotels and Hydropower groups also ended 37.67 points and 29.08 points lower at 2,255.21 points and 2,670.74 points, respectively. The Development Bank and Banking sub-indices also fell by 23.98 points and 18.3 points, respectively, to end the day's trading at 1,896.75 points and 1,720.66 points. Finance group also shed 3.92 points to close at 893.51 points.

'Others' group also edged 0.86 point lower to close at 826.86 points. Manufacturing and Processing group, however, gained 34.03 points to close at 2,648.69 points.

A total of 3.3 million units of shares of 139 companies worth Rs 1.42 billion were traded in the market on Tuesday.


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