Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The benchmark index of the extended its upward momentum for the fourth consecutive trading day on Thursday, rising by 6.03 percent to close at 2,654.93 points.
Despite the sharp index gain, overall market turnover declined compared to the previous session, signaling cautious investor sentiment amid the ongoing election environment.
Index Up, Liquidity Down
Total daily turnover dropped from Rs 4.45 billion on Wednesday to Rs 4.17 billion on Thursday, reflecting a contraction in trading volume even as prices climbed.
Out of the traded sub-indices, all sectors except Hotels & Tourism, Manufacturing & Processing, Microfinance, and Mutual Funds contributed to the market’s rise. The non-life insurance sub-group posted the highest sectoral gain at 1.09 percent.
In total, 138 listed companies recorded price appreciation, placing their investors in profit. Salapa Bikas Bank surged by 9.99 percent, while Reliance Spinning Mills gained 9.26 percent.
However, 118 companies saw their share prices decline, and seven companies remained unchanged.
Heavyweight Trades Dominate
A handful of companies dominated turnover figures.
Api Power Company recorded the highest transaction volume at Rs 326.8 million.
Ankhu Khola Hydropower traded shares worth Rs 211.3 million.
SY Panel saw turnover of Rs 155.1 million.
Ngadi Group Power posted transactions worth Rs 147.9 million.
Market analysts note that the index rally appears to be driven primarily by select influential stocks rather than broad-based sectoral participation.
Election Uncertainty Weighs on Confidence
With the country in election mode, investors appear to be treading cautiously. The decline in turnover suggests that many market participants are adopting a “wait-and-see” approach, assessing potential policy shifts and political volatility that could follow the polls.
Although four consecutive days of gains indicate short-term positive momentum and improving technical sentiment, analysts caution that sustainable upward movement requires stronger liquidity support and wider participation across sectors.
The divergence between index growth and declining turnover reflects a market that is advancing, but without full conviction from institutional and retail investors.
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