KATHMANDU, May 29: Nepal Stock Exchange (Nepse) index has shed a whopping 20.98 points or 5.08 percent and closed at 391.89 points on Tuesday as deepening political uncertainty casted its shadow in the market.
With fewer investors eager to put in their money, turnover at the Nepse plunged below Rs 10 million with number of transactions also remaining less.
According to Nepse, the total turnover for the day remained at meager Rs 8.44 million. Only 43,311 units of shares were traded through 647 transactions on Tuesday´s session. On Sunday, turnover was Rs 107.37 million and index jumped by 12 points.
With the double digit fall, the investors lost around Rs 20 billion in terms of total shares valuation at Nepse. Market capitalization on the day had plunged to Rs 370.08 billion from Rs 389.89 billion of Sunday closing.
"Investors are completely nervous given the worsening political scenario that has heralded adverse investment climate in the country. They fear bleak outlook for coming days," said Rabindra Bhattarai, share analyst.
He tagged Tuesday´s loss as a mere reflection of fast eroding confidence of investors´ in the market. He also viewed that Nepse index could see further decline for the next couple of sessions, shedding the gains over the past few weeks.
The trading begun Tuesday with only 18 investors willing to buy shares. On the other hand, there were more than 1200 shareholders willing to sell their stock. "No wonder, Nepse recorded such a low turnover. Since the beginning of April, Nepse had recorded an average turnover of Rs 40 million every day. Today´s case was abnormal," said another share analyst.
On Tuesday´s trading, all the groups - except for hotels that gained by 29.76 points - saw their sub-indices drop.
Banking sector - the key group in the secondary capital market - suffered a loss by 19.83 points and closed at 375.34 points.
Others group and Hydropower group suffered the most with their sub-indices tumbling by whopping 58.73 points and 43.98 points respectively. Their sub-indices closed at 529.9 points and 623.72 points respectively.
Similarly, indices of Development Bank and Finance groups also shifted to red trajectory with a loss of 3.52 points and 0.8 points respectively.
Insurance and Manufacturing sectors also became losers recording a decline in their sub-indices by 9.79 points and 6.65 points to close at 490.84 points and 667.07 points respectively.