Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The domestic share market rallied sharply on Sunday, buoyed by growing election-related optimism, with the benchmark NEPSE index posting a strong triple-digit style advance and trading activity surging to a six-month high.
On the first trading day of the week, the NEPSE index climbed by 57.55 points to close at 2,772.17 points, reflecting broad-based buying across sectors. Market turnover expanded significantly, with total transactions reaching Rs 13.78 billion, one of the highest levels recorded in the current fiscal year.
Sunday’s turnover was the largest since Shrawan, and among the highest in the past six months. Previously, the market had recorded a turnover of Rs 15.36 billion on Shrawan 15, which remains the highest single-day transaction value so far this fiscal year.
The latest index level marks the strongest post-Gen Z movement performance of the market. Prior to this, the NEPSE had last traded near similar levels on Bhadra 12, when the index stood at around 2,781 points.
Market analysts attribute the rally to rising investor confidence as the political calendar advances toward the House of Representatives election scheduled for Falgun 21.
With candidate nominations, claim-and-objection processes, and withdrawals largely concluded, the election landscape has become clearer, improving sentiment among investors.
The expanding election environment appears to have injected fresh optimism into the equity market, as reflected in both index movement and trading volume.
All sectoral sub-indices ended the session in positive territory. The hotel and tourism sub-index led the gains, surging by 3.35 percent. Out of traded companies, share prices of 340 companies advanced, indicating widespread gains across the market.
Shares of seven companies hit the upper circuit limit during the session. SY Panel, Shree Nagar, Nepal Micro, Bandipur Cable Car, Him Star Energy, Mabilung Hydro, Reliance Finance, and Ankhu Khola Hydropower recorded gains of 10 percent each.
In contrast, share prices of 19 companies declined, while SBI Bank remained unchanged.
In terms of trading volume, Ankhu Khola Hydropower led the market with the highest turnover of Rs 435.9 million.
It was followed by Green Ventures Company with Rs 397.7 million, Shivam Cement with Rs 320 million, United Modi Hydropower with Rs 301.4 million, and Bandipur Cable Car with Rs 290.6 million worth of shares traded.
With the market rally, total market capitalization also expanded, crossing the Rs 46 trillion mark, underscoring renewed momentum in the secondary market amid heightened political and economic activity.
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