Through the review of monetary policy, the National Bank has reduced the risk weight of share loans to 100 percent, before this risk weight was 125 percent.
Compared to the previous day, both the NEPSE index and the trading volume decreased on Monday. NEPSE, which decreased by 8.57 points on Sunday, also decreased by 5.21 points on Monday. After decreasing by 0.19 percent compared to the previous day, the overall NEPSE has dropped to 2,674.76 points.
NEPSE, which has not been growing for a long time, was expected to grow with the appointment of a new governor. On Tuesday, the same day the governor was appointed, the NEPSE rose by 49 points. Since then, the stock has traded for four days, with the Nepse rising 19 points last Thursday. All other days NEPSE has decreased. Four days after the appointment of Vishwa Paudel as the governor, the National Bank has reduced the risk weight of share loans to 100 percent in the third quarter review of the monetary policy of the current fiscal year.
Rashtra Bank does not seem to have a stable policy on share loans. Rashtra Bank, which has been adopting flexible and sometimes loose policies, has now reached the situation it was in four years ago. Nepal Rastra Bank has started issuing integrated instructions since 2067. At that time, the risk weight of all loans flowing into share securities was 150 percent. On December 11, 2075, the risk weight of share loans was changed to 100 percent. On February 11, 2078, the risk weight was increased to 150 percent due to aggressive loan expansion after the Covid infection. In 2079, the risk weight for share loans up to 25 lakh rupees was 100 percent and for all others 150 percent. In 2080, the risk weight was increased to 100 percent for share loans up to 5 million rupees and 125 percent for all others. At present, the risk weight of share loans has been maintained at 100 percent.
On Monday, 92 companies' share prices increased while 155 companies fell. 1 crore 71 lakh 60 thousand 625 shares were bought and sold in a total of 69 thousand 651 transactions. 7 billion 585 million 22 thousand rupees have been traded in those purchases. Which is less than Sunday. Shares worth 7 billion 600 million rupees were traded on Sunday.
With the decrease of NEPSE, the total market capitalization has decreased by 8.68 billion rupees. The total market capitalization, which was 44 trillion 59 billion 47 billion rupees last Sunday, remained at 44 trillion 50 billion 79 billion rupees on Monday. This shows that the size of NEPSE has shrunk by 8.68 billion rupees in a single day. Total market capitalization is calculated by multiplying the total listed shares by the same day's share price. A decrease in capitalization means a decrease in the market value of the listed shares. On this basis, the decrease in capitalization is analyzed as a decrease in the value of the investor's property.
Monday manufacturing and processing rose by 57.05 and banking by 2.48 points. All remaining subgroups declined. Hotels and tourism decreased by 62.08 points, development bank by 14.72 points, life insurance by 27.44 points and microfinance by 74.84 points. Share price of Om Megashree Pharmaceuticals rose by 9.99, Upkar Laghuvitt 6.19, Krishi Vikas Bank Debenture (2083) 4.98, Unnati Sanghar Laghuvitt 4.98, NIMB Debenture 3.97 per cent.
The share price of Gurans microfinance decreased by 10 percent and the transaction was controlled through a circuit breaker. Share prices of Barahi Hydropower fell by 9.85 per cent, NIC Asia Debenture (2085/86) by 5.52 per cent, Abhiyan Laguvitta by 3.92 and Nadeep Laguvitta by 3.65 per cent. In terms of turnover, Radhi Electricity Company, Ngadi Group Power, Universal Power Company, Kumari Bank and NRN Infrastructure and Development were ahead. According to NEPSE, the turnover of Radhi Electricity Company is 643.1 million, Ngadi Group Power is 568.6 million, Universal Power Company is 453.9 million, Kumari Bank is 21.95 million and NRN Infrastructure and Development is 183.35 million.
