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NEPSE Dips to 6 Months Low

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NEPSE Dips to 6 Months Low
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November 28: NEPSE index which had once reached its highest point to ....is on a downfall since the last three weeks. On Sunday, the first trading day of this week, NEPSE declined by 3 per cent in just 45 minutes of transaction causing a circuit breaks. Sunday saw the lowest point of NEPSE index in the last six months. Yesterday, NEPSE index breaking its support of 1,483 points declined by 4.21 per cent (64.55 points) to close at 1,469.48 points.

If the trading amount also decreases proportionately with the decline in index, then there is a higher possibility of further market downfall. In the country's sole secondary market, number of sellers compare to buyers has exceeded. "Investors' lower confidence has lead to downfall of share market in already declining market," said a share broker.

"However, some conscious investors are buying stocks of good companies in a lowering price in this situation. Thus the trading amount has not decreased significantly," added the broker. He added that these conscious investors are waiting the price of the stocks to reach the minimum point so that to purchase them. On Sunday, sub-index of hotel and insurance group declined significantly. "Sub-index of Insurance group declined due to the rumour of NRB not increasing the paid-up capital of the sector as announced earlier," he opined. "The investors are accumulating the funds to invest in IPO, FPO and right shares by selling the stock before it gets too late."

On Sunday, sub-indexes of all group declined resulting decline in overall NEPSE index. The trading amount has decreased to Rs 1.92 billion while total market capitalisation has reached Rs 1637 billion.

Meanwhile, insurance group decreases by 7.51 per cent. Share price of all insurance companies decline which causes dip in the overall insurance group by 562.94 points. The relative strength index (RSI) of the group is in oversold zone at 5.8 scale which indicates of higher selling pressure.

Similarly, sub-index of hotel group has declined by 7.21 per cent. Decrease in the share price of Soaltee hotel and Taragaun Regency caused the group to lose 146 points.

Likewise, hydropower index and development bank's sub-indexes decreased by 5.34 per cent and 4.16 per cent. Moreover, banking, finance companies and 'other' group decreased by 3.64 per cent, 3.55 per cent and 2.53 per cent respectively.

On Sunday, the relative strength index of NEPSE stand in oversold zone at 5.16 scales. It shows of higher selling pressure in the market. 

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