Nepse in a reverse trend as Tarai unrest haunts investors

KATHMANDU, Nov 30: Nepal Stock Exchange (Nepse) is taking a reverse course amid the Tarai turmoil and economic blockade after hitting a record high in mid-September. With the benchmark index falling a big 21.24 points on Sunday -- the first trading-day of the week, stock analysts say the market is now likely to go below the 1,000-point level before it settles.

The stock market closed at 1,022.77 points on Sunday.


Many investors also worry about the impact of the political and economic crisis on the stock market. Some stock brokers say the stock market is on the way to a 'bearish trend'.

"The market is now retreating fast. It might soon come down to the 1,000-point level. It seems many small investors are off-loading their shares with the Tarai unrest turning worse and continuation of India's economic blockade," Narendra Sijapati, former president of Stock Brokers Association of Nepal (SBAN), said. "If the current turbulence continues, the stock market will be bearish soon. Most investors fear that the share prices will plunge further and they will have to lose money.

The panic among investors about further drops in the market is prompting sell-offs," he added.

All trading groups in the stock market ended in the red zone on Sunday. Investors in insurance companies were the biggest losers as the Insurance group index dipped 99.67 points to close at 4,226.38 points. The Hotels group also ended 33.37 points lower at 1,732.05 points.

The HydroPower and Banking groups also shed 28.71 points and 25.69 points, respectively, settling at 1,853.15 points and 931.5 points. The sub-index of Development Bank also went down 14.73 points to finish at 879.96 points. Shares of the Manufacturing and Processing, Others, and Finance groups also inched down 2.46 points, 1.18 points and 1.04 points, respectively, ending at 1,862.43 points, 756.59 points and 545.66 points.

A total of 542,592 units of shares of 106 companies worth Rs 321.8 million were traded in the market on Sunday through 2,540 transactions.

Share prices of seven listed companies went up today which included Nepal Grameen Bikas Bank Ltd, Vijaya Laghubitta Bittiya Sanstha Ltd, Mirmire Microfinance Development Bank Ltd and Society Development Bank Ltd, among others.

The top losers of the day include Araniko Development Bank Ltd, Oriental Hotels Ltd, Miteri Development Bank Ltd, Agricultural Development Bank Ltd and Siddhartha Bank Ltd, among others.

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