Nepse plunges below 1,000 points
The stock market today plunged to below 1000 points after a long winning streak after July 8.
Nepal Stock Exchange (Nepse) lost 17.91 points to close at 995.71 points by the end of today’s trading. Though the experts blamed central bank for its directives to limit banks and financial institutions’ investment on stocks, the market has corrected itself before starting another rally.
Some investors booked the profit, while others tried to come out of the market suspecting a huge fall.
The central bank directive has limited banks and financial institutions investment in stocks to up to one percent of their core capital. It still gives banks and financial institutions room to invest billions on stocks.
The otherwise rallying market started slowing down in recent weeks after the Nepal Stock Exchnage asked the brokers to clear transaction within third day of stock trading. The brokers themselves starting not to trade as they failed to clear the transaction within the time that is third day of stock buying or selling, according to Nepse.
Likewise the banks and financial institutions – that are the movers of the stock market – posted a slow down in their profit growth rate to around seven per cent only.
All the subgroups today witnessed fall in their indices, insurance sub-group being the biggest loser followed by hydropower, hotels and banking sub-groups. Despite the drop in Nepse index, the transaction volume is still high.