Bearish trend continues to tighten its grip over the Nepal Stock Exchange (NEPSE) as it lost 8.11 points to settle at 489.23 points on Monday, the second trading day of this week.

The NEPSE index yesterday plunged to a three-year low of below 500 points

On Sunday, the country's sole secondary market plummeted to 497.34 points.

Experts attribute the ceaseless downward spiral in the stock market to Nepal Rastra Bank's (NRB) recent strict measures against margin lending, talk about 19 percent of promoter shares entering the market and the government's decision requiring investors to have Permanent Account Numbers.

Buyers seem to be avoiding the capital market which is under the command of suppliers for the past few weeks.

The number of listed shares has increased by 53.17 percent during the first six months of the fiscal year 2009/10 against the same period last year. The NEPSE, however, declined by 56 percent during the same period. The number of shares on the market increased with initial public offerings and distribution of bonus and rights shares.

The indices of commercial banks, key player in the NEPSE, lost 12.65 points to slide to 461.17 points

In a linear fashion, development banks declined by 3.96 points to reach 529.4 points, hydropower group slid by 3.96 points to close at 798.85 points, finance companies declined by 1.66 points to rest at 494.36 points and the insurance group made a loss of 0.75 points to go down to 547.27 points. nepalnews.com

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