Starting at 1424.95 points and closing the week at 1386.98, Nepse Index plunged 37.97 points last week. Investors are being cautious, watching and waiting for the kinds of new policies the new government is going to roll out. Another factor can also be attributed to the failure of the Nepal Rastra Bank to introduce suitable stock market regulations in their mid-term review of monetary policy.
In the previous week, the secondary market witnessed a growth of 33.92 points with the formation of new government led by KP Sharma Oli. “This week, investors were skeptical over the new government’s policy toward the stock market due to their reluctance in injecting investment into the country’s only secondary market,” said a stockbroker, under condition of anonymity. “In addition, investors were disappointed with the mid-term review of monetary policy by the central bank last week, which brought almost nothing to promote the country’s only stock exchange market.”
The sensitive index that measures the performance of Group ‘A’ companies also decreased 8.05 points to close at 293.25 points with a fall in indices of the entire trading groups.
With a fall in the market index, the average value of the shares listed in stock market also went down Rs44.37 billion with the market capitalisation reaching to Rs1,622.02 billion from Rs1,666.39 billion over the week.