Downward spiral in NEPSE continues

The benchmark index of NEPSE (Nepal Stock Exchange) on Tuesday nosedived by 27.66 points or 3.81 percent to close at 698.81 points, according to media reports.

The indices of all sub-groups declined sharply thus resulting in a reduction of market capitalization to Rs 371 billion. When the country's sole secondary market closed on Monday the market capitalization stood at Rs 385.9 billion.

Thirty seven of the 47 companies whose shares were traded on Tuesday suffered the drop of the prices of their shares.

Nepal telecom shares saw a downward spiral of 8.47 percent to close at a historic low of Rs 540. In a linear fashion, the banking sector suffered a sharp decline of 22.53 points or 3.18 percent to respite at 686.91. The group index of the hydropower sector also went down by 13.33 points to 860.81.

Meanwhile, finance companies and insurance companies saw a marginal drop of 2.68 and 3.8 points respectively.

Market analysts ascribed the decline to various banks and financial institutions announcing bonus shares and rights issues. nepalnews.com nd Nov 26 08

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