Nepse declines by 10.61 points

July 30, 2006
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The index of Nepal Stock Exchange (Nepse) declined by 10.61 points, over the week after an impressive 9.06 points growth the previous week.

According to the data of Nepal Stock Exchange, the index of sole secondary market of the country reached 387.34 points on Thursday, the last day of the trading under the regular lot, down from 397.95 points of Sunday.

According to market experts, the sharp decline is due to decline in the share prices of the commercial banks following the announcement of Monetary Policy 2006-07 on last Sunday.

The policy announced a provision to the existing national level commercial banks to increase their paid up capital gradually to one billion rupees by the end of July 2009.

According to Nepse, a total of 183,434 units of shares worth Rs 102,481,899 were traded as compared to the 231,599 units of shares worth Rs 76,724,103 the previous week.

The commercial banks group became a great loser, with its index decreasing by 16.31 points. The index of commercial banks closed at 438.38 points, down from 454.69 points on Sunday. Likewise, the index of the development banks group decreased to 290.22 points, down from 294.10 points. The other group lost seven points, with its index ending at 402.65 points, from 409.65 points.

The indices of manufacturing, insurance and finance groups rose to 303.65 points, 387.84 points, and 263.31 points respectively, up from 302.13 points, 386.08 points, and 261.77 points.

The indices of the hotels and trading groups remained unchanged at 180.77 points and 148.11 points, respectively.

Like previous weeks, the commercial banks group continued to dominate the Nepse floor by capturing 83.96 percent share. The other group followed it with 9.04 percent, while the finance group held 3.91 percent of the total transaction.

The insurance group captured 1.81 percent and the manufacturing group accounted for 0.64 percent. The development banks group had a 0.54 percent, while the trading group had a mere 0.09 percent share.