Secondary market investors hit by high volatility in 2021 – myRepublica


KATMANDU, January 1: The Nepal Stock Exchange (Nepse) observed high volatility in 2021, with the market observing a wide range of fluctuations in its various indices throughout the year.

The country’s only stock exchange gained 437.23 points on all trades last year. On January 3, the first trading day of 2021, Nepse opened at 2,087.27 points while on Wednesday, the last day of the year, the secondary market closed at 2,524.50 points.

Over the period, the secondary market reached a high of 3,227 points in August, but it could not be maintained for long and the market successively fell to 2,255 points in December. The amount of single-day sales reached 21.647 billion rupees on August 15, while the market cap was also valued at 4,406 billion rupees at its daily high. After a drop in stock prices, the market capitalization fell to Rs 3.567 billion when the market closed on the last day of the year.

With a growing attraction to the country’s stock market, the number of mat account holders has reached around 4.7 million, up from just 1.5 million in the past year. It also shows a notable increase in the mobilization of private sector capital.

According to a stockbroker, the market surged in the early days of the year due to investor attractiveness to online trading due to the foreclosure and the impacts of the coronavirus. “However, soaring interest rates, the liquidity crisis in the banking system, the effects of the presidents of regulators’ involvement in insider trading and the delay in renewing these positions have all affected sentiment. investors lately, “the broker said on condition of anonymity.

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