Nepal’s stock market faced a decline for the second day in a row. On Thursday, the NEPSE index dropped by 31.50 points, closing at 2,922.63 — a loss of 1.06%.
Sensitive Index also slips
The Sensitive Index, which tracks strong-performing companies, also dipped by 1.32% to reach 501.12 points.
In total, over 3.68 crore units of shares from 318 listed companies were traded today, crossing a transaction amount of Rs. 15.98 billion.
Why is the market falling?
Tulsi Ram Dhakal, president of Nepal Investors Forum, said this is just a healthy correction after a steady rise in recent weeks. “Short-term investors are booking profits, and that’s mainly why we’re seeing this dip. Fundamentally, there’s nothing to worry about,” he said.
He expects the market to bounce back next week.
Similarly, Ghanashyam Pandey, president of Nepal Shareholders Association, agreed that profit booking is the key reason behind the pressure. He also mentioned pending settlements and concerns related to the IGIN system as secondary reasons.
“Economic indicators are positive. So there’s no real reason for the market to go down for long. We expect a recovery starting next week,” he added.
Only one sector gained
Out of 13 sectors, only the finance group showed gains today, rising by 1.18%.
The biggest drop came from the trade sector, which declined by 2.44%. Other major sector losses included:
- Banking: -1.44%
- Hydropower: -1.15%
- Investment: -1.32%
- Life Insurance: -1.29%
- Manufacturing & Processing: -1.14%
- Hotels: -0.99%
- Microfinance: -0.50%
- Mutual Funds: -0.60%
- Non-Life Insurance: -0.70%
- Others: -0.30%
- Development Banks: -0.47%
Top traded companies
The most actively traded stock today was Himalayan Reinsurance, with a turnover of over Rs. 1.33 billion. Other high-volume trades included:
- Nepal Reinsurance: Rs. 753.5 million
- Himalayan Distillery: Rs. 690.9 million
- Shivam Cement: Rs. 671.1 million
- Lumbini Bikas Bank: Rs. 412.7 million
Biggest gainers and losers
Five companies hit the upper circuit today, including:
- Trade Tower
- Nepal Finance
- Corporate Development Bank
- Green Development Bank
- Saptakoshi Development Bank
Other notable gainers were Sindhu Development Bank (+6.74%), Sanvi Energy (+5.39%), and Mahuli Microfinance (+2.81%).
On the downside, Bhugol Energy was the biggest loser, falling by 7.10%, followed by Mai Khola Hydropower (-5.70%) and Upper Solu Hydropower (-4.94%).
