Nepse witnesses continuous decline

Nepal Stock Exchange (Nepse), this week, witnessed a downward spiral by 36.53 points to close at 770.37 points from last weekʼs closure of 806.90 points.

According to The Himalayan Times daily, this decline in the index of the Nepse is attributed to the huge volume of Initial Public Offerings (IPOs), bonus and right shares and debentures of various financial institutions worth billions.

The Nepse, which had registered a record high of 1175.8 from August 31, has seen a fall by almost 35 per cent or 405.43 in these three months.

According to some market experts, the overtly inflated value of Nepal Telecom (NT) shares, book closing of the financial institutions and deluge of shares in the secondary market are the prime reasons behind the ceaseless fall in Nepse.

Barring aside the insurance companies group, all other groups witnessed a downward trend in the capital market chiefly because of eroding confidence of investors, according to the report. nepalnews.com nd Nov 23 08

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