The NEPSE index rose by 4.83 points on Tuesday. After increasing by 0.17 percent compared to the previous day, the overall NEPSE closed at 2,766.09 points. Although the NEPSE index has improved, the turnover has decreased. It is the analysis of the experts that the turnover does not support the growth of the stock market.

Experts say that due to lack of confidence of investors, big investors have not entered the market and the existing investors also want to exit by selling their shares, so the expected contribution to the improvement of the overall NEPSE has not been reached.

“There has been a sharp decline in trading volume without any particular reason,” said a stockbroker, adding that a few points decline in the overall NEPSE index is normal. However, it seems that the continuous decrease in transaction amount does not support the overall NEPSE index.' 

Due to the low interest rates, the loan demand for share securities has increased in banks and financial institutions. In the last financial year alone, loans on share securities have increased by about 56 percent. This means that in the last financial year alone, banks and financial institutions have provided an additional 50 billion 600 million rupees in share loans. However, the ratio of loan expansion does not seem to have a positive effect on the stock market. Experts say that there is no direct effect on the stock market because the loan flow in the share mortgage is used. 

Similarly, although there was a general improvement in NEPSE on Tuesday, the transaction amount decreased by about 1.5 billion compared to the previous day. Out of the 101 companies that traded on that day, their share prices increased, while 149 companies decreased. In this way, although there are more companies that decrease than increase in share price, the overall NEPSE has improved by about 5 points. 

On that day, 92 lakh 43 thousand 332 shares were bought and sold in 45 thousand 116 transactions. Shares worth 4 billion 185 million rupees have been traded in this purchase. The turnover has decreased compared to the previous day. Shares worth 5.75 billion rupees were traded in NEPSE on Monday. As compared to Monday, the number of trading shares and the share of trading shares also decreased along with the trading amount on Tuesday. 

Among the 13 subgroups traded on that day, the indices of investment, production and processing, microfinance and non-life insurance declined. However, after the index of all other subgroups increased, the overall NEPSE increased by about 5 points. On that day, the share price of Vikas Hydropower Company increased the most by 9.99 percent. The share price of Nepal Republic Media increased by 8.61, Narayani Development Bank by 7.28, CYC Nepal Lagubitta by 4.53 and NIC Asia Bond 2088 by 3.96 percent.