The turnover on the Nepal Stock Exchange (Nepse) plunged on the first two days of trading after Dashain on Wednesday and Thursday. The turnover which hovered around Rs 400 million before the festival dropped to mere Rs 100 million.
Anjan Raj Paudel, managing director of Thrive Brokerage House said the long Dashain vacation could have set the investors in a wait-and-watch mode. “The trade volume used to dip also in the past on the market reopening right after the long holidays,” he said.
Stockbrokers have attributed the fall to the impact of the long holidays of the festival and Nepse’s step to start the paperless transactions.
“It has created confusion among potential investors over transactions of the paperless share certificates,” Poudel said. Nepse officially started the paperless transaction of the banking group on Wednesday. Under the provision, the sellers can sell the stocks they have been holding in physical format but the buyers receive the ownership transfer only in the electronic format. “Most of the buyers are reluctant to invest due to this dilemma,” said Paudel.
The Nepse index also fell on each of the two days, sliding 12.78 points on Wednesday followed by another drop of 3.33 points on Thursday.
Paudel said the Nepse’s decision had mainly affected the stocks transaction of the banking group. The group’s index fell 9.88 points and 4.82 points respectively.
Promoters’ shares of Nabil Bank witnessed the biggest turnover of Rs 9.58 million on Thursday.
source: the kathmandu post,10 oct 2014
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Anjan Raj Paudel, managing director of Thrive Brokerage House said the long Dashain vacation could have set the investors in a wait-and-watch mode. “The trade volume used to dip also in the past on the market reopening right after the long holidays,” he said.
Stockbrokers have attributed the fall to the impact of the long holidays of the festival and Nepse’s step to start the paperless transactions.
“It has created confusion among potential investors over transactions of the paperless share certificates,” Poudel said. Nepse officially started the paperless transaction of the banking group on Wednesday. Under the provision, the sellers can sell the stocks they have been holding in physical format but the buyers receive the ownership transfer only in the electronic format. “Most of the buyers are reluctant to invest due to this dilemma,” said Paudel.
The Nepse index also fell on each of the two days, sliding 12.78 points on Wednesday followed by another drop of 3.33 points on Thursday.
Paudel said the Nepse’s decision had mainly affected the stocks transaction of the banking group. The group’s index fell 9.88 points and 4.82 points respectively.
Promoters’ shares of Nabil Bank witnessed the biggest turnover of Rs 9.58 million on Thursday.
source: the kathmandu post,10 oct 2014
LINK
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