Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal’s stock market has witnessed a notable slowdown in trading activity in the first eight months of the current fiscal year, with total turnover reaching Rs 1.028 trillion, marking a sharp decline compared to the previous year.
According to market data, a total of Rs 1028 billion 47 crore 33 lakh worth of shares were traded during the review period. This represents a 29.83 percent drop compared to the same period last fiscal year, when transactions had reached Rs 1146 billion 65 crore 66 lakh 57 thousand.
The decline highlights weakening investor sentiment in Nepal’s capital market, particularly across most sectoral indices listed on the Nepal Stock Exchange.
Except for the manufacturing and processing sector, all other subgroups recorded a decline in trading volume. Among them, the hydropower sector dominated market activity, with shares worth Rs 443 billion traded—though this figure is still down by 10.08 percent compared to the same period last year.
Market analysts attribute the slowdown to political uncertainty triggered by the “Gen Z protests” on September 23–24 (Bhadra 23–24), which weakened investor confidence and led to reduced participation in the equity market.
However, the market began to recover gradually from mid-January (Magh), showing signs of renewed momentum. Following the completion of elections on February 21 (Falgun 21), investor sentiment improved, resulting in increased daily turnover and moderate market fluctuations.
Despite recent recovery trends, the overall performance of Nepal’s stock market indicates lingering caution among investors, influenced by political developments, liquidity conditions, and broader economic uncertainties.
NEPSE Trading Comparison (In Millions)
Source: Nepse
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