Nepse down 21.14 points

- POST REPORT, Kathmandu

Aug 18, 2014-

Nepal Stock Exchange (Nepse) on Monday witnessed a sharp fall of 21.14 points to close at 1013.25 points. Delay in transaction clearance for the last few weeks and poor results of a few companies have been blamed from the market slump.

The market turnover amounted to Rs 478 million from the trading of 873,376 shares.

Anjan Raj Paudel, managing director of Thrive Brokerage House, said the downfall was a continuation of the last week’s trend. “After rising to as high as 1083.55 points on July 21, the market has been witnessing a downturn. In fact, it is market correction,” he said.

According to Paudel, the selling pressure was high from the beginning. “Besides profit booking, investors sentiments could have been affected by the delay in transaction clearance,” he said.

Nitesh Kumar Agrawal of ABC Securities, however, attributed the slump to poor financial reports of some companies. “High provisioning and heavy losses posted by some companies like Grand Bank hit investor confidence,” he said.

Grand Bank incurred a net loss of Rs 1.6 billion last fiscal year, according to its financial statement. Except for manufacturing, almost all trading groups posted losses. The group representing hydropower companies (down 62.68 points) led the losers’ side that included insurance, hotels and banking groups.

Published: 19-08-2014 09:43

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