Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU — The downward momentum in Nepal’s stock market persisted on Tuesday, with the NEPSE index posting another double-digit decline and overall trading turnover also falling, signaling continued weakness in investor sentiment.
The Nepal Stock Exchange (NEPSE) index dropped by 10.25 points, closing at 2,662.14, extending the losses seen earlier in the week. On Monday, the benchmark had already fallen by 26.05 points, indicating sustained selling pressure in the secondary market. The index had opened Tuesday’s trading session at 2,672.39 points before sliding throughout the day as most listed shares traded in negative territory.
NEPSE officials said both the market index and transaction volume have been on a continuous decline since Sunday, the first trading day of the week, reflecting a cautious outlook among investors.
Sharp Drop in Trading Turnover
Alongside the index decline, trading turnover also weakened notably. A total of 21.7 million shares (2,17,15,868 units) of 324 listed companies were traded through 89,836 transactions, generating a turnover of NPR 8.61 billion.
This figure is lower compared to Monday, when the market recorded transactions exceeding NPR 10 billion, suggesting reduced market participation and liquidity. The drop in turnover indicates that buyers are becoming more selective while sellers continue to dominate.
Market Breadth Heavily Negative
Market breadth remained strongly negative:
179 companies saw their share prices decline
74 companies recorded price gains
7 companies remained unchanged
The significantly higher number of losing stocks dragged the overall market index downward.
Sector-Wise Performance
Most sectoral indices closed in the red, showing widespread pressure across industries:
Sector Change (Points)Banking -1.32Development Banks -65.67Finance -22.71Hotels & Tourism -35.65Hydropower -9.05Investment -0.56Life Insurance -98.44Manufacturing & Processing -59.70Microfinance -24.17Non-Life Insurance -68.56Others -8.23
Only two sectors managed to stay positive:
Mutual Funds: +0.04 points
Trading Sector: +19.70 points
The sharp declines in life insurance, non-life insurance, manufacturing, and development banking sectors added substantial pressure on the benchmark index.
Market Trend Outlook
The continuous fall in both the NEPSE index and trading value suggests growing risk aversion in Nepal’s capital market. Key sectors such as banking, insurance, hydropower, and development banks—traditionally seen as core investment areas—remaining under pressure indicates limited immediate recovery momentum.
Analysts note that unless fresh institutional buying or positive macroeconomic triggers emerge, the market may continue to experience volatility and subdued performance in the near term.
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