KATHMANDU, May 30: Nepal Stock Exchange (Nepse) nosedived by 50.33 points on Monday, the very next day of the announcement of the annual budget for fiscal year 2022/23, with the government’s annual financial plan failing to boost the confidence of investors.
The market that opened at 2,223.78 points went into a straight fall during trading hours, finally closing at 2,173.44 points. The entire 13 trading groups landed in red while the sensitive index that measures the performance of blue chips shares also declined by 10.33 points.
According to the investors, the budget for the next fiscal year has failed to introduce notable packages for the country’s stock market at a time when the secondary market has already lost more than 1,000 points in the past few months. As a part of promoting the country’s shares market, the annual budget however talks about allocating 10 percent reservation for migrant workers to invest in IPOs, diversification of stock market’s instruments, promoting transactions of government bonds in the secondary market and making mandatory provision for a big company to issue primary shares, among others.
In the intraday trading on Monday, the total turnover amount stood at Rs 1.33 billion, slightly higher than the average single-day transaction amount of last week. Among the individual companies, Nepal Doorsanchar Company Limited had the largest transaction of its shares worth Rs 49.63 million. Nepal Investment Bank Limited was the biggest loser while Balephi Hydropower Limited gained the largest percent in its share price.