Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal’s stock market continued its bearish momentum on Monday, with the benchmark NEPSE Index falling by 47.71 points, marking a sharp two-day loss of 119 points following the formation of the new government.
The index, which stood at around 2,950 points prior to the government change, has now dropped to 2,831, reflecting growing investor caution and short-term uncertainty in the market.
Broad-Based Decline Across All Sectors
The downturn was widespread, with all sectoral indices closing in negative territory. The trading sector recorded the highest loss of 2.56 percent, followed by:
Banking: 1.86%Hydropower: 1.93%Finance: 2.00%Non-life Insurance: 1.82%Investment: 1.59%Microfinance: 1.30%Development Banks: 1.24%Hotels & Tourism: 1.18%Life Insurance: 1.40%Others: 2.13%Manufacturing & Processing: 0.21%
Market analysts attribute the across-the-board decline to profit booking, policy uncertainty, and weak investor sentiment amid political transition.
Turnover Drops as Market Weakens
Alongside the index decline, total trading volume also decreased. Daily turnover fell to NPR 12.96 billion from NPR 15.03 billion recorded in the previous session, indicating reduced participation and cautious trading behavior.
Out of the traded companies:
26 stocks gained237 stocks declined5 remained unchangedSelect Stocks Hit Upper Circuit Despite Market Fall
Despite the broader downturn, a handful of companies posted strong gains, with six stocks hitting the 10 percent upper circuit:
Reliance Spinning MillsSuper Khudi HydropowerRidgeline EnergySuryakunda HydroelectricBhujung HydropowerHotel Forest Inn
Additionally, Saptakoshi Development Bank saw its share price rise by 9.83 percent.
Top Losers and Active Stocks
On the losing side, the steepest declines were recorded in:
Solu Hydropower: -7.79%Unique Nepal Microfinance: -7.23%CYC Microfinance: -6.86%Multipurpose Finance: -4.93%
Meanwhile, the most actively traded stocks included:
Ridi PowerNgadi Group PowerShivam CementsAPI Power CompanyNational Hydropower CompanyMarket Outlook: Sentiment Weak Amid Transition
The recent two-day slide highlights fragile investor confidence, particularly during periods of political transition. While Nepal’s macroeconomic indicators such as liquidity remain relatively strong, market participants appear to be adopting a wait-and-see approach regarding upcoming policy directions under the new administration.
Analysts suggest that clarity on economic reforms, capital market policies, and investor-friendly measures will be crucial in stabilizing the market and restoring bullish momentum in the coming sessions.
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