Stock market continues to go downhill

 

KATHMANDU, MARCH 23: The prolonged delay in appointing the Governor of Nepal Rastra Bank (NRB) and the CEO of the Nepal Stock Exchange (NEPSE) has intensified uncertainty in the stock market. While the selection process for both positions is ongoing, the lack of a final decision continues to unsettle the stock investors.

The recent political developments have further contributed to market instability. Despite new leadership at the Securities Board of Nepal (SEBON), visible market reforms have yet to take shape, dampening investor confidence. Additionally, an increase in market supply—driven by dividend distributions from last year’s profits, rights issues of several companies, and the expiration of lock-in periods for certain stocks—has further pressured prices due to insufficient demand.

As the investors grow impatient, NEPSE has been on a continuous downward trend for the past six trading sessions. On Sunday, the NEPSE index fell by 54.62 points, closing at 2,614.68. A total of Rs 6.32 billion worth of shares were traded, with all sectoral indices in decline.

In today’s session, the share prices of only 13 companies saw gains, while 230 companies posted losses. Altogether, 317 companies recorded transactions, with 123 million shares changing hands, totaling Rs 6.32 billion in turnover. Among them, Himalayan Reinsurance had the highest trading volume, exceeding Rs 420 million.

All 13 sub-indices closed in the red, with the finance sector recording the steepest decline at 2.99%. Similarly, the sub-indices for development banks, hotels and tourism, hydropower, investment, microfinance, non-life insurance, and trading sectors fell by more than 2%. Meanwhile, banking, life insurance, manufacturing and processing, and other sectors declined by over 1%.

Additionally, shares of Mithila Laghubitta Bittiya Sanstha hit the lower circuit level during the trading session.