KATHMANDU, Feb 24: Nepal Stock Exchange (Nepse) on Thursday plunged 58.99 points to close at 2,661.44 points with the Nepal Rastra Bank (NRB) adopting stern measures on loans against shares, and political uncertainty created by the US-funded Millenium Challenge Corporation (MCC) compact agreement.
Enforcing a directive on Wednesday, NRB increased the risk weightage for loans against shares to 150 percent from 100 percent, which has made the banks tighten their loans flow in the segment. Similarly, the political uncertainty created by the violent protests against the MCC compact agreement to prevent its ratification through parliament has been increasing a rift between the ruling political parties. These have helped take down the investors’ confidence, said stockbrokers.
Nepse falls below 1,300-point mark
Overall, the secondary market dropped 2.17 percent in Thursday’s trading. The entire 13 trading groups landed in red while five of them witnessed a fall of three-digit points in average shares prices.
Despite a double digit fall in the Nepse index, the total turnover amount increased to Rs 4.29 billion from Rs 3.13 billion on the previous day. With the turnover of its shares worth Rs 269.71 million, National Hydro Power Company Limited was recorded in the top list of the largest turnover amount.
