Not updated KYC forms continue taking toll over NEPSE index and turnover; market largely stagnant for the investors in wait and watch mode

The benchmark index at Nepal Stock Exchange couldn’t sustain the double-digit growth that it had clocked during the market opening hours today and has finally ended in red settling at 1,339.19 points. The index which couldn’t inch up as expected wasn’t even supported by the total turnover as a mere Rs 34.82 crore worth of shares were traded today where just over 7.69 lakh unit shares exchanged ownership.

After a couple of positive news that NEPSE is in final stage of testing online trading system and receiving approval from SEBON to begin margin lending, it was widely expected that the investors’ confidence will receive a major boost and the market would be northbound from today. Unlike the expectations, the market started shredding points which it had already gained in the beginning moments of the day thereby finally losing 0.46 points at the end.

In addition, the sideways movement of the market has also been attributed to the big investors’ current wait and watch state as they are buying some time to see how the annual fiscal policy and budget of the federal government will look like to the sharemarket. The low turnover is further justified by the fact that many potential investors are forced to stay out of the trading floor because the stock brokers require some 3-4 days to upgrade the KYC details since most of the investors opted to rush to the brokers only when their trading got suspended from jestha 1.

The total turnover of Mirmire Microfinance Development Bank (MMFDB) which had the highest turnover for the day stands at meager Rs 2.36 crore. However, the trading floor witnessed 2 scrips which had their values reaching up to the positive circuit point as the price of Mirmire Microfinance Development Bank (MMFDB) scales up by 10% to Rs 3,102 and Support Microfinance Bittiya Sanstha  (SMB) rocketed by similar 9.92% to Rs 521. On the other hand, price of (HDL) which had been witnessing regular swelling for the last few days has decreased by Rs 50 to rest at Rs 1340.

The sensitive index which is used to measure the performance of the Class a companies has slided by 0.04 points to rest at 282.26 mark.

While looking at 10 different sub-indexes, insurance company has registered a growth of a meager 19.76 points making it the winner for the day while hotel sector which came down by similar 19.55 points made it the most losing sector.