March 1: Investors investing money in the hydropower sector have lost the most in Monday's trading, despite expectations that the endorsement of the Millennium Challenge Corporation (MCC) deal would have a positive impact on the share prices of hydropower sector. 

Among the indices of 13 groups, the hydropower group declined the most at 3.9 percent. Of the 10 companies whose prices dropped the most, nine belonged to the hydropower sector. Shares of Tehrathum Power Company Limited and Samling Power Company dropped by 10 percent. 

Companies under the hydropower group were also among the groups with the highest turnover. Api Power had the highest turnover, followed by Arun Valley Hydropower. Shares of Api Power worth Rs 169.99 million were traded. Shares of Arun Valley Hydro worth Rs 149.42 million were also traded the same day. 

A total of 3.4 million shares worth Rs 1.62 billion of 45 listed companies under the Hydropower Group were traded during the period. The hydropower group had a share of 44.29 percent in the total turnover. 

The US-funded MCC which was approved by the House of Representatives on February 27 has provisions to build power transmission lines and roads within the next five years. 

According to the Millennium Challenge Account (MCA) Nepal, about Rs 45 billion of the grant received by Nepal through MCC will be spent on the construction of transmission lines. Investors had speculated that most of the grants under the MCC agreement would be invested in the power sector, which would have a positive impact on the share market of hydropower companies. 

Likewise, analysts had also speculated that the ratification of MCC would lift the overall share market. 

Chhotelal Rauniyar, a stock investor and former chairman of the Nepal Investors Forum, said that even after the MCC was passed, investors were not enthusiastic due to the previous policy change. He said that the market has not turned positive as most investors are confused about MCC and its impact on the market. 

According to Rauniyar, investors who were disappointed by the monetary policy review, lack of investable capital in banks and financial institutions and rising interest rates, could not be enthusiastic even after the MCC was passed. 

Another stock investor, Keshav Koirala, said that the MCC agreement should not be linked to the share trading of the hydropower company. He also accused the government of increasing the share price of the hydropower companies by linking it to the MCC agreement.