On Wednesday, despite efforts to recover, the NEPSE closed in the negative by about 1.5 points, despite failing to turn positive.
What you should know
The Nepal Stock Exchange (NEPSE) index, which measures share trading, closed down by a small number on Wednesday. The NEPSE, which closed down by 12.58 points on Tuesday, fell by 1.64 points on Wednesday. The overall NEPSE index fell to 2,681.50 points on Wednesday, down 0.06 percent compared to Tuesday.
Last Monday, the NEPSE improved by about 1.5 points, but on Tuesday it fell by double digits. On Wednesday, the NEPSE tried to recover, but could not be positive, but it closed in a negative position by about 1.5 points.
Out of the companies that were traded on Wednesday, the share prices of 113 companies increased, the price of 134 companies decreased. And, the remaining 13 companies remained stable. On this day, the share prices of Kalinchowk Darshan, Supermai Hydropower, Supermadi Hydropower and Aankhukhola Hydropower increased by 10 percent each, after which a circuit breaker was activated to control trading. Along with this, the value of the assets of the shareholders of 113 companies increased on Wednesday. However, the shareholders of 134 companies suffered losses.
Even though the share prices of those companies decreased, the value of the assets of the shareholders also decreased. On that day, the price of HLI Large Cap Fund decreased by the most by 5.54 percent. With this, the share prices of 134 companies decreased. There was no change in the value of the assets of the shareholders of 13 companies on Wednesday. The analysis was conducted as if there was no change in the assets of investors as the share prices of those companies remained stable.
A total of 16.662626 shares were bought and sold on Wednesday in 80,422 share transactions. Shares worth 7.4997 billion rupees were traded in those transactions. The transaction amount decreased compared to the previous day. On Tuesday, the stock market saw a transaction worth 8.6315 billion rupees.
Last week, the highest transaction amount in the last seven months was 14.5 billion rupees on the NEPSE. However, in the following days, the transaction amount has been gradually declining along with the NEPSE index. This means that investors' confidence in the market is decreasing. Or, investors are in a wait-and-see mode and are not able to invest in shares with confidence. Of the 13 subgroups that were traded on Wednesday, the indices of banking, life insurance, manufacturing and processing, microfinance, collective investment funds and other subgroups decreased.
The indices of the remaining subgroups increased, according to NEPSE. On that day, the indices of the banking subgroup decreased by 0.33, life insurance by 0.13, manufacturing and processing by 0.53, microfinance by 0.30, collective investment funds by 0.31 and other subgroups by 0.31 percent. However, the indices of the development bank subgroup decreased by 0.10, finance companies by 0.93, hotels and tourism by 0.18, hydropower by 0.38, investment by 0.08, non-life insurance by 0.13 and trade subgroup by 0.49 percent, according to NEPSE.
After the decline in NEPSE, the size of the stock market, total market capitalization, decreased by 3 billion in a single day. The total market capitalization, which was 455 billion rupees on Tuesday, has been limited to 452 billion rupees on Wednesday.
