Fiscal Nepal
First Business News Portal in English from Nepal
Nepal stock plungs nepse
KATHMANDU: Nepal’s stock market witnessed unusually weak trading activity on Monday, with daily turnover falling to its lowest level in nearly two years amid subdued investor participation and cautious market sentiment.
A total of Rs 2.45 billion worth of shares were traded during the four-hour trading session, marking the lowest full-session turnover since Baisakh 24, 2081 BS (May 7, 2024).
The sharp decline in transaction volume highlights a significant slowdown in market activity, particularly when compared to the Nepal Stock Exchange’s (NEPSE) peak daily trading record of Rs 29.95 billion.
Although turnover had previously dropped to just Rs 550 million on Falgun 25, that session was shortened after a circuit breaker halted trading, making Monday’s turnover the weakest recorded during a full trading day.
The previous trading day had witnessed transactions worth Rs 3.09 billion, indicating a further contraction in liquidity and investor participation.
The benchmark NEPSE index declined marginally by 1.03 points, closing at 2,730.00.
Market breadth remained mixed, with share prices of 119 companies advancing, while 132 declined and 18 remained unchanged.
Among sectoral indices, banking rose by 0.14 percent, while development banks increased by 0.03 percent, hydropower gained 0.16 percent, investment rose 0.09 percent, and the others category edged up by 0.31 percent.
On the losing side, finance slipped 0.01 percent, hotels and tourism declined 0.23 percent, life insurance fell 0.07 percent, manufacturing and processing dropped 0.58 percent, microfinance declined 0.24 percent, non-life insurance lost 0.69 percent, and the trading sector weakened by 0.48 percent.
Among individual gainers, Ingwa Hydropower Limited posted the highest increase, surging 8.42 percent, followed by Bungal Hydropower Company Limited, which climbed 6.32 percent, and Sagarmatha Jalbidhyut Company Limited, which advanced 3.28 percent.
Meanwhile, SY Panel Nepal Limited emerged as the biggest loser of the day, with its share price falling 3.60 percent.
The most actively traded companies by transaction value included Sahas Urja Limited, Reliance Spinning Mills Limited, SY Panel Nepal, API Power Company Limited, and Shivam Cements Limited.
Analysts say persistently low turnover signals weak market confidence, with investors appearing to remain on the sidelines amid uncertainty over monetary policy direction, corporate earnings, and broader economic conditions in Nepal.
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