There was not much excitement in the stock market this week, the overall NEPSE fell by almost double digits as there were more companies that fell than rose.
What you should know
On the last day of weekly trading, the NEPSE index fell by 9.22 points. After decreasing by 0.33 percent compared to the previous day, the overall NEPSE closed at 2,757.97 points. There was not much excitement in the stock market this week.
The NEPSE, which fell by about 27 points on the first day, closed at 9.16 points on Monday and 6.51 points on Tuesday. But the increase on Monday and Tuesday did not last until Wednesday. This is the reason why NEPSE closed down by 9.70 points on Wednesday and 9.22 points on Thursday. 53 of the companies traded on this day increased while 197 decreased. In this way, the overall NEPSE has decreased by almost double digits as there are more companies that decrease than increase in share price.
On Thursday, 1 crore 68 lakh 55 thousand 906 shares were bought and sold in 56 thousand 824 transactions. Shares worth 5.2 billion rupees have been traded in this purchase. The turnover has decreased compared to the previous day. Shares worth 5.2 billion rupees were traded on Wednesday. Out of the 13 sub-groups traded on this day, the index of all except non-life insurance fell, resulting in a decline in the overall NEPSE by almost double digits. The index of non-life insurance subgroup is positive by 0.14 percent.
On Thursday, the share price of Bikas Hydropower increased by 9.99 percent, Community Microfinance by 5.37, Muktinath Bond by 3.35, Rasuwagadhi Hydropower by 2.86 and Sanima Growth Fund by 2.75 percent. The five main companies that lost the most share price on Thursday are Jan Utthan Community Lagufitta, Sayapatri Hydropower, Reliwal Samriddhi Yojana, Nabil Loans 2082 and Panchkanya My Hydropower respectively.
Based on turnover, Himalayan Re-Insurance, Nepal Re-Insurance, Balefi Hydropower, Butwal Power Company and Himalayan Distillery are the first respectively. In the recent months, although the loan on share mortgages has been increasing, its positive effect has not been seen in the stock market. In the last 11 months of the financial year alone, banks and financial institutions have provided an additional 38.57 billion rupees in share loans. Compared to the 11 months of the previous fiscal year, the share loan disbursed during the same period last year is 42.8 percent more.
In the 11 months of the previous financial year, the growth rate of share loans increased by 14.2 percent. Share loans have been increasing since the beginning of the last financial year. But the share market has not increased in proportion to the share loan. There is no obligation to invest more money in the stock market than the amount of money that has come in the name of share loan. Therefore, experts say that the stock market did not increase as expected because the loan flowed in the share mortgage increased and not all of it was invested in the capital market.
