Panic selling following the hostile opinion from Finance Minister sabotages NEPSE Index; “stay calm and panic not”, suggest market observers and regulators
Sun, Mar 4, 2018 4:08 PM on Latest, Featured, Stock Market,
On the first trading day of the week, the benchmark index at Nepal Stock Exchange (NEPSE) has witnessed a massive landslide of 41.56 points or 3.09% to close at 1,304.43 points.
After being closed for 3 days, the NEPSE index had opened at 1345.99 points from where there was no looking up for the local bourse. At one point, speculations were making rounds that the circuit would be clamped to the market as it had kept declining in a rapid pace. The index had even touched 1291.86 point which was lower than the last years low of 1296.23 points recorded on Magh 27, 2073.
It has been speculated that the unfavorable opinion from the newly appointed Finance Minister has taken toll over the only secondary market of the country. However, experts and market observers believe that such opinions don’t hold and should not have held much impact over investors’ sentiment as opinions of this kind don’t hold much impacts. In fact, it was actually expected that the market would respond to the recent decision of commercial banks to keep the rising interest rate in check.
General Manager at Nepal Stock Exchange (NEPSE) Mr. Chandra Singh Saud has urged investors not to pursue any form of rumour and manipulation before making their investment decisions. “We along with other market regulators haven’t enforced any new policy that has potential to alter the market both in short-term and in long-run. So there doesn’t seem any valid reason for the market to plunge significantly like today”.
The total turnover of the day stood above Rs 48.39 crore where more than 13.11 lakh unit shares were traded through 5,943 transactions.
Two companies came down heavily today hitting negative circuit which are Himalayan Distillery Limited (HDL) and Bishal Bazar Company (BBC). shares of Himalayan Distillery Limited (HDL) in particular lost the most today with their value tumbling by 10% to close at Rs 1026. Scrips of Suryodaya Laghubitta Bittiya Sanstha Limited (SLBS) made the highest profit today as their value inched up by 3.93% to close at Rs 1084.
Shares of Nepal Life Insurance Company Limited (NLIC) stood ahead in terms of total turnover as more than Rs 3.39 crore worth of its shares were traded today. In addition, over 82 thousand unit shares of Nepal Bank Limited (NBL) exchanged their ownership today making it the highest traded shares as well.
Both the Sensitive and float index went down heavily today by 8.58 points and 3.1 points respectively.
The sub-indices of all the trading groups tanked points massively today and landed in red. Insurance sector that shredded 286.2 points. Hydropower sector which lost 62.5 points saw it as the second most losing sector for the day.
It has been speculated that the unfavorable opinion from the newly appointed Finance Minister has taken toll over the only secondary market of the country. However, experts and market observers believe that such opinions don’t hold and should not have held much impact over investors’ sentiment as opinions of this kind don’t hold much impacts. In fact, it was actually expected that the market would respond to the recent decision of commercial banks to keep the rising interest rate in check.
General Manager at Nepal Stock Exchange (NEPSE) Mr. Chandra Singh Saud has urged investors not to pursue any form of rumour and manipulation before making their investment decisions. “We along with other market regulators haven’t enforced any new policy that has potential to alter the market both in short-term and in long-run. So there doesn’t seem any valid reason for the market to plunge significantly like today”.
The total turnover of the day stood above Rs 48.39 crore where more than 13.11 lakh unit shares were traded through 5,943 transactions.
Two companies came down heavily today hitting negative circuit which are Himalayan Distillery Limited (HDL) and Bishal Bazar Company (BBC). shares of Himalayan Distillery Limited (HDL) in particular lost the most today with their value tumbling by 10% to close at Rs 1026. Scrips of Suryodaya Laghubitta Bittiya Sanstha Limited (SLBS) made the highest profit today as their value inched up by 3.93% to close at Rs 1084.
Shares of Nepal Life Insurance Company Limited (NLIC) stood ahead in terms of total turnover as more than Rs 3.39 crore worth of its shares were traded today. In addition, over 82 thousand unit shares of Nepal Bank Limited (NBL) exchanged their ownership today making it the highest traded shares as well.
Both the Sensitive and float index went down heavily today by 8.58 points and 3.1 points respectively.
The sub-indices of all the trading groups tanked points massively today and landed in red. Insurance sector that shredded 286.2 points. Hydropower sector which lost 62.5 points saw it as the second most losing sector for the day.
