Print Edition - 2016-06-06 | MONEY
Nepse dips 34.98 points
Jun 6, 2016-
Nepal Stock Exchange (Nepse) lost 34.98 points on Sunday, the biggest single-day fall in the last six months, to close at 1483.14 points.
Stockbrokers attributed the fall to possibilities of regulators imposing stern rules on investment in shares, which dented investor confidence.
“Reports urging the need for strict market monitoring prompted panic selling,” said Narendra Raj Sijapati, managing director of Kalika Securities. “Moreover, discussions in the Parliament on issues related to the Bank and Financial Institution Act (Bafia) also impacted the market psychology.”
Under the influence of lawmakers who also chair bank boards, some of the rules proposed to ensure good corporate governance have been removed from the Bafia bill, inviting controversy. Banks and financial institutions are stock market heavyweights.
Despite gloomy economic picture, stock market had been on an upward trajectory. But experts now say the market is in self-correction mode.
All other sectors, except for hotels and manufacturing, saw their indices fall. The insurance sector saw the highest drop of 219.47 points, followed by hydropower, banking, finance and others. Hotels, however, gained 132.34 points. “The recent announcement of capital hike plan of Soaltee Crowne Plaza attracted investors towards hotels,” said Sijapati.
According to stockbrokers, rumours about the revision of margin lending provision also contributed to the fall. NRB is reportedly considering decreasing the loan against shares from 80 percent of share value to 50 percent.
On Sunday, the total turnover stood above Rs1.39 billion and 2.4 million scripts were traded. Citizens bank led in terms of highest turnover which stood at Rs209.57 million. Womi Microfinance gained the highest 83 points while Sana Kisan Development Bank lost 115 points.
Published: 06-06-2016 08:54