Transaction volume at Nepal Stock Exchange (Nepse) hit Rs1.12 billion, the largest single-day transaction in the last three months, following the central bank’s move to address the existing problems at the country’s only secondary market. 

The last time that the stock market saw a similar transaction amount was back in September 25, 2018. Since then, the daily transaction amount has been hovering at around Rs300 million. 

As per the stock analysts, the turnover amount surged as a result of the Nepal Rastra Bank issuing a circular on Wednesday. 

It revised its unified directive to the banking and financial institutions, adopting a lenient policy with regards to providing loan against shares. 

In the new provision, the central bank has reduced the risk weight in such loan to 100 percent from 150 percent, asked the banks to provide margin lending of up to 65 percent from 50 percent and allowed banks to issue loan on shares at maximum of 40 percent of their core capital, up from 25 percent. 

Despite the surge in the transaction volume, the market index fell by 1.08 points to close at 1,215.16 points. 

Except for life insurance, manufacturing and ‘others,’ the remaining trading groups posted red in their indices. 

In terms of the individual companies, Nepal Life Insurance saw shares worth Rs148.69 million exchanging hands, the most among listed companies. 

Similarly, shares of Citizen Investment Trust gained the most, with 9.03 percent increase in the value of its share.