Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU — Nepal’s secondary market witnessed a notable correction on Tuesday as the Nepal Stock Exchange (NEPSE) Index declined by 18.10 points, closing at 2,807.12. The drop came amid broad-based selling pressure across most sectoral indices, even as overall trading volume and turnover showed a significant uptick.
Except for the hotel and tourism segment, all sub-indices ended in the red, reflecting cautious investor sentiment and profit-booking trends following recent gains. The hotel and tourism index stood out as the sole gainer, rising by 1.16 percent, signaling selective buying interest tied to Nepal’s recovering tourism industry and seasonal momentum. In contrast, the “others” sub-index recorded the steepest decline of 1.27 percent, dragging the broader market downward.
Market breadth remained heavily negative, with share prices of 215 companies declining, indicating widespread selling across sectors. Among the worst performers, Dolti Power Company Ltd. saw its stock price plunge by 8.71 percent, making it the biggest loser of the trading session.
However, not all segments were under pressure. A total of 48 companies posted gains, highlighting pockets of resilience and speculative momentum in select counters.
Despite the overall downturn, three companies managed to hit the positive circuit limit, reflecting strong investor demand and bullish sentiment in specific stocks. These include:
Their upper circuit movement suggests targeted accumulation, possibly driven by company-specific developments or speculative trading.
Interestingly, the decline in the benchmark index did not deter trading activity. Total daily turnover rose to NPR 5.77 billion, up from NPR 5.43 billion recorded on Monday. This increase indicates heightened market participation and liquidity, often interpreted as a sign of active repositioning by investors.
Among individual stocks, Solu Hydropower Company led the market in terms of transaction value, with shares worth approximately NPR 370 million traded during the session.
The divergence between falling indices and rising turnover suggests a distribution phase, where investors may be booking profits while new entrants absorb supply. The resilience in tourism stocks and circuit hits in select companies indicate that sectoral rotation and stock-specific strategies are currently shaping Nepal’s equity market dynamics.
With NEPSE hovering near the 2,800 level, market participants are likely to closely monitor macroeconomic signals, interest rate trends, and regulatory developments for near-term direction.
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