Nepse plunges below 300 points

Nepal today closed at 297.63 points to the low of 2005-06.Nepse hovered around 300 points during the fiscal year 2005-06. It was at 287.90 points on July 17, 2005.
Lack of investors’ confidence, poor economic performance, government’s apathy towards the capital market and recent ‘crisis’ in some of the banks and financial institutions have contributed to the continuous fall in the secondary market index.
The two key players commercial banks and hydropower subgroups’ whopping fall dragged the market to almost seven year low.
Hydropower subgroup shed 13.22 points to 472.97 points due all the four listed hydropower companies loss in the day’s trading. Arun Valley hydro lost Rs 36 per unit share, Chilime Hydropower lost Rs 17, Butwal Power lost Rs 7 and National Hydropower lost Re 1 per unit share to pull the hydropower subgroup down.
Similarly, Nabil lost Rs 65 per unit share, whereas Laxmi Bank lost Rs 29 and Standard Chartered Bank Nepal lost Rs 21 per unit share to drag the commercial bank subgroup by 6.1 points to 242.72 points today.
Similarly, manufacturing and production subgroup lost 3.38 points due to Unilever that has lost Rs 99 per unit today, whereas Development banks subgroup lost 2.32 points, insurance subgroup lost 2.28 points, finance companies subgroup shed 1.44 points.
However, others subgroup which has Nepal Telecom under its belt gained 1.17 points and hotels subgroup gained 0.56 points. Nepal Telecom gained Re 1 per unit share. The trading subgroup didnot see its trading today.
The secondary market also saw transaction of Rs 15.33 million today — almost 10 times less than the market used to in its heydays.
The government has directed the institutional investors like Citizen Investment Trust and Rastriya Beema Sansthan to buy the stocks of undervalued and profitable shares, they have been buying small amounts — under their institutions regulation — that could not propel the market.