Published On: February 19, 2022 06:20 PM NPT By: Republica | @RepublicaNepal
KATHMANDU, Feb 19: Investors at the secondary market lost Rs 89.35 billion in the book value following a drop in share prices during the transactions last week.
According to Nepal Stock Exchange (Nepse), the market’s capitalization dropped to Rs 3.870 trillion from Rs 3.959 trillion over the week. Likewise, the Nepse index also declined 69.05 points to close at 2,732.51 points.
Overall, investors’ confidence at the secondary market was hit largely by an uncertainty to the ratification process of the US-funded Millenium Challenge Corporation (MCC) compact agreement and mid-term review of the monetary policy and rise in banks’ interest rate due to liquidity crunch. As a result, the secondary market witnessed a panic sale on the first trading day of the week, which took down the index by over 100 points.
The market appeared to stabilize in the consecutive days with a gain of 53.30 points on Tuesday trading. However, it could not help stop the falling graph of stocks trading mainly on the following two trading days.
Amid low confidence of investors, the single-day transaction volume at the secondary market declined to as low as Rs 2.27 billion on Thursday. The figure was almost one-tenth of the volume a few months ago. The total traded amount fell to Rs 18.19 billion from Rs 24.44 billion in the previous week.
Except ‘others,’ sub-indices of the rest of 12 trading groups were down in the review period. Sensitive index that measures the performance of blue chip companies also dropped 8.64 points to close at 518.64 points.
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