Amid strong selling pressure, Nepal Stock Exchange (Nepse) on Monday dipped 42.84 points, or 2.9 percent, to close at its eight-month low of 1,432.57 points.

Nepse had last hit this level on April 20, when the market closed at 1,440.69 points.

Investors have been reluctant to purchase shares amid a bearish trend for the past few weeks, according to stockbrokers. “Due to high selling pressure and low demand, 

the index plunged heavily,” said Priya Raj Regmi, president of Stockbrokers Association of Nepal.

Listed companies saw Rs47.2 billion wiped off their value on the day as the market capitalisation fell to Rs1,602.29 billion from Rs1,649.49 billion. The overall market transaction stood at Rs481.24 million. 

Pralhad Kumari Oli, managing director of Pragyan Securities, echoed Regmi, and said: “Many buyers are in a wait-and-see mode amid a fall in the secondary market.”

He also attributed the fall to banks raising interest rates on margin loans. “Also, investors are under pressure to pay interests to banks with the arrival of the end of the second quarter of the fiscal year,” he said. “Besides, the political impasse and most of the companies completing book-closure after declaring dividends could have also dented investor confidence.”

On Monday, indices of the entire trading groups posted losses. The top loser was the group representing insurance companies (down 311.01 points). Hydropower companies and commercial banks lost 44.16 points and 40.86 points, respectively. 

Company-wise, Nagbeli Laghubitta Bikas Bank lost the most, down 341 points. Everest Bank witnessed the biggest turnover of Rs35.49 million.