KATHMANDU, Oct 25: Share investors lost Rs 282 billion out of transactions in the secondary market in over a month following the Gen Z movement.
According to Nepal Stock Exchange (NEPSE), the market index stood at 2,672.25 points on September 8, which declined to 2,503.85 points on October 19, the last day of turnover before the market closed for Tihar. During the period, the market capitalization also declined to Rs 4.185 trillion from Rs 4.467 trillion.
The secondary market performed poorly due to the depletion in investors’ confidence in the aftermath of the Gen Z movement and violence, according to stockbrokers. The hotel and tourism sectors have been adversely affected by the impact of the movement.
Nepal’s BoP surplus nosedived from over Rs 282 billion to Rs 1....
Likewise, the hydropower companies have been affected by floods and landslides. Dozens of hydropower companies have been damaged due to the floods and landslides that occurred last month. Furthermore, a group demanding free shares of a number of hydropower companies has made the situation even worse.
Similarly, insurance companies have been facing a surge in their liabilities due to insurance claims. As of now, they have received claims for Rs 25 billion against the damages triggered by the natural calamities and Gen Z movement.
The banks and financial institutions (BFIs) have been piled up with unused liquidity, which has led to a decline in their profits. Likewise, the market was affected by the first quarter end of the current fiscal year, which compelled the investors to settle their interest and installment amounts on loans of the BFIs.
In addition, the ongoing protests in both regulators—NEPSE and the Securities Board of Nepal—also fueled up in the deterioration of the investors’ confidence, said the stockbrokers.
