The index of Nepal Stock Exchange (Nepse) continued to decline, though the trend is gradually improving on the fourth day of the week.

The Nepse gained when the market closed on Wednesday evening compared to Tuesday. The market witnessed only an 8 point slip against 12 points on Tuesday. The market lost only 3.09 points Thursday, the last day of trading under the regular lot.

General manager of the Nepse, Rewat Bahadur Karki, told Nepalnews that they have imposed restrictions on matching transactions and circuit breaker (delisting of companies having continued fall of 10 percent trading for a few days) to bring stability to the decline of the market.

He said the cause of the sudden fall in the business was due to recently introduced monetary policy, which discouraged investors in buying shares of commercial banks. With the policy to increase the core capital formation, the monetary policy may reduce bonus share for the investors.

“The monetary policy affects stock market negatively if incomes from shares is expected to reduce in a country like ours where the structure of capital formation ratio is volatile,” Karki said.

“We cannot determine if the market will improve in the days to come,” Karki said hinting at the uncertainty of the stock market.

Major sufferers on Tuesday’s market were Nabil Bank, which witnessed a blistering fall of Rs 158 per share to close at Rs 2,142. Likewise, share prices of Himalayan Bank and Everest Bank fell by Rs 108 and Rs 100 per share respectively. The losses continued on Wednesday as well.

Commercial banks occupy more than 70 percent of the total share trading business.