KATHMANDU: Nepal’s capital market has failed to regain the level it had reached before Balendra Shah became prime minister, with the Nepal Stock Exchange (NEPSE) continuing to remain under pressure.
Shah took the oath of office on March 27, after which NEPSE opened for trading on March 29. On that day, transactions worth Rs 14.78 billion were recorded, while the NEPSE index fell 71.05 points to 2,879.11.
The market has continued to lose momentum since then, with daily turnover in recent days averaging around Rs 3 billion.
On the latest trading day, Friday, NEPSE fell 4.05 points to close at 2,650.09. The total turnover stood at Rs 3.66 billion.
Compared with the first trading day after Shah assumed office, Friday’s turnover was nearly Rs 11 billion lower, while the NEPSE index was 229.02 points below the March 29 level.
PM’s initiatives fail to revive market
Prime Minister Shah intensified meetings with representatives of the private sector from the third week of June after concerns grew over a sluggish economy and continued weakness in the capital market.
He also held discussions with representatives of the Securities Board of Nepal, NEPSE and the capital market to explore measures to improve the market.
Meanwhile, the Securities Board introduced several policy initiatives, including the Capital Market Development Roadmap, 2082, and a concept paper on the policy, legal, structural and technical arrangements required for margin lending, securities lending and borrowing, and short selling in Nepal’s securities market.
The board has also issued the Main Regulatory Framework for Securities Financing Services in Nepal, 2083, and the White Paper on Primary Capital Market Development in Nepal, 2083.
However, despite the prime minister’s assurances and the regulator’s policy initiatives, the capital market has yet to show a significant recovery in either trading volume or investor confidence.
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