Kathmandu, Nepal, June 21, 2021: Nepal Stock Exchange (NEPSE) index has plunged by 71.06 points even on the second trading day of the week on Monday. The NEPSE index closed at 2,834.40 points after losing 71.06 points.
The index opened at 2,924.07 points went as low as 2,828.73 points before closing at 2,834.40 points at last. Excessive selling pressure has been witnessed in the Nepalese share market since two days.
As the Securities Board of Nepal (SEBON), a regulatory body of the Nepalese share market enlisted different 51 companies citing that the share values of these companies were overvalued due to irregular practices; the NEPSE has been falling down since Sunday. NEPSE had recorded 63.11 points loss on Sunday, the first trading day of the week, as well.
Following the statement of the SEBON, the stock market has been witnessing extreme selling pressure. Most of the investors, particularly the new one, have become panic due to the suspicious statement of the SEBON. Representative organization of private sectors, investors’ forums and concerned experts have already condemned the act of the SEBON.
As the Supreme Court (SC) had also denied issuing interim order against of the SEBON decision, investors would have panic further. Advocate Rabin Bohaju had moved to the SC demanding interim order against of the SEBON’s decision. The single bench of SC Justice Kumar Chedal had issued a show-cause order against of the SEBON.
With the massive fall in the share market, transation volume has also coming down causing loss to the government in revenue. On Monday, just 22,522,491 shares were traded via 127,837 transactions. The trading of 227 scrips brought just the total market turnover to a little over Rs. Rs 3.937 trillion.
The float index has also lost by 5.24 points and closed at 195.68 points while the sensitive index closed at 520.18 points losing 8.37 points.
Nepal Reinsurance Company Limited (NRIC) has become the highest individual scrip turnover company regarding turnover and transactions.
Narayani Development Bank Limited (NABBC) became the highest gainer company while the Pokhara Finance Limited (PFL) lost the most by 9.26 percent on Monday.