Nepal Stock Exchange (Nepse) last week lost a whopping 124.05 points to close at 1,534.03 points, dragged by banking and insurance sectors.

The market, which opened at 1,658.08 points on Sunday, fell 58.46 points to end the day at 1,599.62 points.

The market rose 6.67 points on Monday to reach 1,606.29 points, but shed 23.82 points, 42.46 points, and 7.48 points on Tuesday, Wednesday and Thursday, respectively. Overall, the stock market closed the week 7.48 percent lower.

“Market heavyweights commercial banks and insurance companies saw their share prices plunge as investors rushed to book profits, pulling down the overall market,” said Anjan Raj Poudel, managing director of Thrive Brokerage.

Along with the Nepse index, the sensitive index that measures the performance of Group ‘A’ companies also shed 27.42 points to close at 331.17.

The total value of shares listed on the exchange declined by Rs136.10 billion last week, with the market capitalisation falling to Rs1,706.54 billion.

Of the nine trading groups, indices of seven plunged. The insurance sub-index led the losers’ side with a fall of 1,148.14 points. The sub-index closed at 7,493.05 points.

Poudel said that the heavy loss in the insurance sib-index could be due to

falling investor confidence amid delay in the government’s decision over planned hike in capital requirements for insurance companies.

The group representing hydropower companies followed the insurance

group with a fall of 156.16 points. The sub-index closed at 1,953.8 points.

Other lowers were development banks (down 152.83 points), hotels (down 140.95 points), commercial banks (down 108.52 points), finance companies (down 44.97 points) and manufacturing companies(down 34.09 points).

Others and trading groups, however, rose 6.07 points and 1.12 points, respectively.

Last week, Everest Bank saw the biggest turnover of Rs711.58 million. The bank had declared 70 percent bonus shares and 33 percent rights shares a few weeks ago.

National Life Insurance stood second with a turnover of Rs384.8 million, while Shikhar Insurance, Bank of Kathmandu Lumbini and Siddhartha Bank rounded out the top five.

Civil Bank topped in terms of the number of shares—460,000 units.

Last week, shares of 152 listed companies changed hands.

The overall market transaction increased 0.9 percent to Rs5.07 billion,

while the number of shares traded rose to 7,335,360 units from 5,287,170.

Right Shares/Bonus Shares

Company    Type    Units

Bhargav Bikas Bank    Bonus    200,000

Matribhumi Bikas Bank    Bonus    72,600

Oriental Hotels    Bonus    1,319,542.92

NB Insurance    Right    1,200,000