Nepal Stock Exchange (NEPSE) index witnessed a fall for four trading days this week. The market, which fell by 27.21 points on the first trading day of the week (Sunday), continued this trend to settle at 2005.83 points.
The market, which opened for four days a week, has decreased by 56.2 points to settle at 2005.83 points. With the NEPSE index falling, the business has also shrunk this week.
The bench mark index witnessed a transaction of 12 billion in the market. Rs 20 billion was traded in the market last week. Compared to last week, this week's business has decreased by almost half.
According to experts, the decline in turnover by almost half compared to last week is a sign that the investor's confidence has started increasing. A decline in trading while the market is increasing is a sign that the market will go up in the future.
However, they say that the investors' morale has started to increase due to the shrinking business in the declining market. They argue that even if the market does not take an immediate upward journey, it will take a rhythm gradually.
Also, this week some people on social media seem to have a psychological effect of expressions like banks going down. Banks are safe at the end of the week according to the National Bank. They say that the statement issued saying that investors' deposits are safe will have a positive effect.
Declining interest rates and maximum liquidity in the system suggest that the market will recover soon. They say that the market will find support at 1980 points below this.
The failure of NEPSE to reach new highs even in a supportive market environment seems to be the deteriorating financial statement of the listed companies. Due to the fact that the companies that can give good returns cannot pay dividends in the coming year, the attractiveness of the investor market has not increased.
When the economy is slack, the companies are not able to operate at full capacity. As a result, the profit of the company has been impacted as the business seems to be at a standstill. As the profit of the companies has been affected and the dividend capacity has decreased, the market has not been able to grow even under market conditions.
Out of 13 sub-indices went up while others declined. While the finance and manufacturing sub-indices increased, the other 11 sub-indices witnessed a decline this week.
Top gainers and losers this week
Samaj Laghubitta Bittiya Samaj is among the highest earners this week. The share price of this microfinance has been continuously rising and the share price has reached Rs 2,176.30 per share.
Similarly, the investors of Bottlers Nepal (Balaju), Bottlers Nepal (Tarai), Molung Hydropower, Atmanirbhar Lagubitta and Joshi Hydropower Company have earned this week.
Balefi Hydropower, Singati Hydropower, Mountain Hydropower, Geo Energy and Ngadi Hydropower are among the highest losers of the NEPSE.
Similarly, Himalayan Re-Insurance Company made the highest turnover with 980 million rupees this week.
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