Tuesday, September 1, 2009

Nepse's Downfall Continues

The downfall of Nepal Stock Exchange (Nepse) continued for three successive days on Monday, as confusion over possible arrival of promoters shares in secondary share market further prolongs.

The benchmark Nepse shed 10.12 points to close at 661.03 points at the end of Monday´s trading. Nepse, which is also considered as the indicator of investors´ confidence on share market, has lost 21 points in three days, as investors fear the arrival of promoters shares would flood the stock market, leading to further decline in share prices.

During Monday´s trading, Banking and Hydropower groups saw their sub-indices drop by 13.26 and 18.12 points to settle at 679.4 points and 854.62 points respectively. Decline in the share prices of major banks such as Himalyan Bank, Nabil Bank, SBI bank and Standard Chartered Bank dragged down the sub-index of Banking group, the dominant player in the secondary share market.

Similarly, Development Bank and Finance groups also saw their sub-indices dip by 4.42 points and 4.68 points to close at 694.89 points and 658.2 points respectively. Insurance and Others groups also suffered losses with their sub-indices going down by 0.19 points and 8.23 points to close at 640.91 points and 646.19 points respectively.

Total market capitalization, total value of shares in the market, declined to Rs 459.87 billion from Rs 466.92 billion on Sunday.

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