KATHMANDU: The Nepal Stock Exchange (Nepse) dropped 18.26 points to close at 1,028.14 points as the euphoria over the new monetary policy apparently dissipated. The secondary market had jumped to new highs after Nepal Rastra Bank unveiled Monetary Policy 2015-16 on Thursday.
The central bank’s latest announcement requiring banks and financial institutions (BFIs) to jack up their paid-up capital had sent the index soaring more than 90 points in two days. The share market had recorded a record high turnover of Rs1.30 billion on Monday.
Narendra Raj Sijapati, president of the Nepal Stockbrokers’ Association, attributed the fall in the Nepse to investors’ rushing to book their profits. “A number of investors who made huge capital gains in the two trading days since the monetary policy was announced rushed to book their profits, bringing down the index,” he said.
Sijapati said the big turnover amount was a result of the buying pressure. “As the impact of the policy is still in place, many buyers are still seeking to purchase stocks of BFIs that have a good financial position,” he said.
On Tuesday, the sub-indices of almost all the trading groups except others slipped. Hydropower with a drop of 31.78 points was the biggest loser. It was followed by development banks, hotels and commercial banks. Along with the fall in the overall index, the volume of transactions also dropped to Rs541.2 million, almost half of Monday’s figure.
