KATHMANDU: Nepal Stock Exchange (Nepse) applied the circuit breaker thrice today as the stock market index dropped by up to five per cent. Trading was halted for 15 minutes the first time after the benchmark index dropped below three-per cent mark; the second circuit breaker was clamped after the index fell below four-per cent mark; and the third circuit breaker was used after the market fell below five per cent. Tradings are automatically halted for the day after the benchmark index falls below five-per cent level.
The benchmark index that opened at 921.69 points dropped to an over three-month low of 875.56 points, today, falling 46.13 points, as share prices of the major companies fell.
“The market has been declining after the central bank directed banks and financial institutions to limit their investment in ‘held-for-trading’ securities to one per cent of their core capital,” said Narendra Raj Sijapati, president of Stock Brokers’ Association of Nepal. He added that the market further suffered today as investors stepped back from investing in shares following the uncertain political situation created as the three major political parties — Nepali Congress, CPN-UML and UCPN-Maoist — were sharply divided over whether or not to submit reports of settled and unsettled issues in the Constituent Assembly from the Constitutional Political Dialogue and Consensus Committee, on Saturday.
The banking sector that has the largest share of the total market capitalisation dropped 52.59 points to rest at 775.83 points, whereas hydropower and finance subgroups lost 170.15 points and 161.22 points, respectively. Others subgroup went down by 17.62 points with the stock price of Nepal Telecom contracting by Rs 15 in the trading day.
The leading companies suffered the most as their stock value shrunk by up to Rs 195 today. The share price of Citizen Investment Trust slid Rs 195 per share to rest at Rs 2800 and that of Standard Chartered Bank contracted by Rs 180 to Rs 2120. Nabil Bank’s share price closed at Rs 2230, down Rs 167.
Likewise, Nepal Life Insurance lost Rs 170 per share to close at Rs 3580, and National Life Insurance rested at Rs 1960, losing Rs 140 per share.
Similarly, stock price of Chilime Hydropower rested at Rs 2071, shrinking by Rs 159 from the previous close and that of Everest Bank lost Rs 125 and Nerude Laghubitta Bikas Bank lost Rs 127, resting at Rs 1908 and Rs 1270, respectively.
Likewise, 14 other companies including Nepal Bangladesh Bank, Nepal Investment Bank and Kumari Bank, contracted between Rs 51 to Rs 94. Today, all companies declined until the day’s closing except for seven firms whose share prices were unchanged and four companies who made some gains.
“Today’s decline at Nepse was an abnormal change that we cannot associate with any single reason,” said Narayan Ghimire, head of CIT Merchant Banking Unit. “However, we expect the market to recover soon.” - See more at: http://thehimalayantimes.com/fullNews.php?headline=Circuit+breakers+in+action+as+Nepse+drops+five+per+cent+&NewsID=426753#sthash.4LbKM3dm.dpuf
The benchmark index that opened at 921.69 points dropped to an over three-month low of 875.56 points, today, falling 46.13 points, as share prices of the major companies fell.
“The market has been declining after the central bank directed banks and financial institutions to limit their investment in ‘held-for-trading’ securities to one per cent of their core capital,” said Narendra Raj Sijapati, president of Stock Brokers’ Association of Nepal. He added that the market further suffered today as investors stepped back from investing in shares following the uncertain political situation created as the three major political parties — Nepali Congress, CPN-UML and UCPN-Maoist — were sharply divided over whether or not to submit reports of settled and unsettled issues in the Constituent Assembly from the Constitutional Political Dialogue and Consensus Committee, on Saturday.
The banking sector that has the largest share of the total market capitalisation dropped 52.59 points to rest at 775.83 points, whereas hydropower and finance subgroups lost 170.15 points and 161.22 points, respectively. Others subgroup went down by 17.62 points with the stock price of Nepal Telecom contracting by Rs 15 in the trading day.
The leading companies suffered the most as their stock value shrunk by up to Rs 195 today. The share price of Citizen Investment Trust slid Rs 195 per share to rest at Rs 2800 and that of Standard Chartered Bank contracted by Rs 180 to Rs 2120. Nabil Bank’s share price closed at Rs 2230, down Rs 167.
Likewise, Nepal Life Insurance lost Rs 170 per share to close at Rs 3580, and National Life Insurance rested at Rs 1960, losing Rs 140 per share.
Similarly, stock price of Chilime Hydropower rested at Rs 2071, shrinking by Rs 159 from the previous close and that of Everest Bank lost Rs 125 and Nerude Laghubitta Bikas Bank lost Rs 127, resting at Rs 1908 and Rs 1270, respectively.
Likewise, 14 other companies including Nepal Bangladesh Bank, Nepal Investment Bank and Kumari Bank, contracted between Rs 51 to Rs 94. Today, all companies declined until the day’s closing except for seven firms whose share prices were unchanged and four companies who made some gains.
“Today’s decline at Nepse was an abnormal change that we cannot associate with any single reason,” said Narayan Ghimire, head of CIT Merchant Banking Unit. “However, we expect the market to recover soon.” - See more at: http://thehimalayantimes.com/fullNews.php?headline=Circuit+breakers+in+action+as+Nepse+drops+five+per+cent+&NewsID=426753#sthash.4LbKM3dm.dpuf
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