Weekly Update

Nepal Stock Exchange at this week was outshined by hefty supply pressure that led the sole secondary market end in deep red for entire session. Investors psychology turns to feeble and propped up with selling tuned retracted the index below the psychological mark of 600 in the first day of week, there after crafted downward ladder to close at worst for more than 28 months.

The benchmark index initiate with downcast and turn down to negative terrain throughout the week. Nepse lost 21.24 points for the week closing at 578.19 (Thursday) in comparison to Sunday's close of 599.43.

The passive performance of stock market in recent days has been buoyed by fragile investors' outlook on political and economical condition of nation backed by floating of new shares in the market through right shares, bonus shares and Initial public offering. Likewise, hard hitting rules on margin lending, high interest rate for loan against share, passive economy, high inflation and world recession has kept its possession hard by any means to cripple the stock market.

Between all this gloomy news, companies are providing fair dividends to the shareholders but this reward yet is not enough to boost up the gains in stocks. Therefore, at contemporary phase the market is not running on fundamentals or technical strength but with the investors' sentiment which is absolutely feeble. Moreover, political discrepancies along with fresh protest declaration by opposition party U-CPNL (moist) has definitely created an additional leg down in the market.

Dragged down in scrip prices of most of the financial stocks smashed the Sensitive index to 144.57, losing 7.01 points. 78 scrip Sensex consist, 14 commercial banks, 37 finance companies, 15 development bank, 10 insurance companies and one each from hydropower and manufacturing companies. Likewise, float Index an indicator of performance of ordinary shares in the market was down up 2.18 points to 56.26 points.

Commercial bank which commands the titanic volume of trade at Nepal Stock Exchange plummets hefty of 33.51 points to 552.19 in comparison to Sunday's close of 585.84. Likewise, development bank slid 2.55 points or to 646.81, finance dropped 10.72 points, hydro plummets 4.12 points and insurance was down 2.60 points in comparison to Sunday's close. Similarly, other decline 5.88 points, hotel slid 1.14 points however, manufacturing sector rose diminutive of 4.80 points.

Merely 95 companies registered their presence in the secondary market over this week. All in all 492389 shares traded via 4544 transaction over the week. Moreover, Rs. 276356647 turnovers were realized along with Rs. 407,538.89 million market capitalizations.