KATHMANDU: The Nepal Stock Exchange (NEPSE) index fell 20.48 points to close at 2,566.76 on Monday, the first trading day of the week. The market declined steadily from the opening until the close.
Trading turnover also declined. A total of Rs 3.27 billion worth of shares changed hands through 44,777 transactions involving 90 million shares of 359 companies. This was slightly lower than Friday’s turnover of Rs 3.89 billion.
Share prices of 32 companies increased on Monday, while 242 declined and four remained unchanged.
Most sectoral indices also ended lower. Banking fell 10.73 points, development banks 29.16, finance 24.36, hotels 73.28, hydropower 36.95, investment 1.01, life insurance 93.81, manufacturing 104.51, microfinance 27.24, non-life insurance 60.99 and the Others group 16.67 points. The trading sector was the only gainer, rising 10.71 points.
Market sentiment has remained under pressure following a Securities Board of Nepal provision requiring shareholders holding more than 5 percent of a company’s shares to provide information before selling. The provision was introduced amid concerns over increased selling by promoters after the lock-in period ends.
The House of Representatives’ Finance Committee has also directed the board to reconsider the provision. Share-price adjustments during the dividend season have additionally contributed to the decline in the market index.
