Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The stock market rallied sharply on Sunday as investor confidence surged following the political unity between Kathmandu Metropolitan City Mayor Balendra Shah and the Rastriya Swatantra Party (RSP), led by Rabi Lamichhane.
Market participants, who had remained cautious amid prolonged political uncertainty and a sluggish economy, turned optimistic after Shah formally joined the RSP. The agreement projecting Balendra Shah as a future prime ministerial candidate while Rabi Lamichhane continues as party chair has fueled expectations of greater political stability in the coming period.
With perceptions that the uncertain political environment is shifting in a positive direction—and growing speculation that parliamentary elections could be held on Falgun 21—the benchmark NEPSE index rose by nearly 2 percent on the first trading day of the week.
The NEPSE index, which opened at 2,585.87 points, surged by 47.55 points to close at 2,633.42 points. The market maintained a steady upward trajectory throughout the session after trading opened following the public announcement of the Rabi–Balen agreement.
Most listed companies recorded gains at their opening prices, pushing the broader market higher. Alongside the index, total transaction volume also improved significantly, signaling renewed buying interest from investors.
Market analysts note that simultaneous improvement in both the index and trading volume is generally interpreted as a bullish signal for the days ahead. Despite several listed companies announcing dividends in recent weeks, the market had previously failed to gain momentum due to negative political sentiment. Sunday’s rally, driven by the Rabi–Balen political alignment, has strengthened expectations of a continued market upswing.
Of the companies traded on Sunday, share prices of 238 firms advanced. Total turnover climbed to over Rs 5.5 billion.
Among individual stocks, Middle Solu Hydropower Company recorded a gain of 9.49 percent, while Win Nepal Laghubitta Microfinance saw its share price fall by 10 percent.
In total, shares of 328 companies were traded on the NEPSE. A total of 13.4 million shares changed hands through 89,259 transactions, with a total turnover of Rs 5.53 billion.
The transaction volume was significantly higher compared to last Wednesday, when shares worth Rs 3.19 billion were traded, highlighting a clear rebound in market activity.
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