Nepal’s stock market made a mild recovery this week, but one sector stood out with a surprising rally—hydropower. The NEPSE index rose by 0.56%, reaching 2,655 points, while hydropower stocks alone jumped by 5.53%, dominating this week’s top 10 gainers.
So, what’s fueling this sudden hype in hydropower? Let’s break it down.
What Happened This Week?
- Market recovered after last week’s 1.96% drop.
- Highest daily trading value since Falgun 20 recorded on Thursday: NPR 12.51 billion.
- Hydropower emerged as the most profitable sector.
Out of the top 10 most increased companies this week, 9 were hydropower firms. This wasn’t just random—it shows a clear shift in investor sentiment.
Why Investors Are Turning to Hydropower
- Lower bank interest rates are reducing the cost of energy projects.
- Hydropower companies offer stable income via Power Purchase Agreements (PPAs).
- No stress of market demand—once electricity is produced, it’s sold as per agreement.
- Compared to banks and finance companies facing loan recovery pressure, hydropower looks safer.
- Other industries like tourism and manufacturing are still struggling with slow demand growth.
Former Stock Broker Association President Bharat Ranabhat explained that falling interest rates are cutting project costs and improving financial reports, giving investors more confidence.
IPOs and Rights Offers Creating More Buzz
- Him Star Urja Company IPO is open now for:
- Project-affected locals: 186,500 shares
- Nepalis working abroad: 93,250 shares
- General public offering will come in the second phase.
Meanwhile:
- Sun Nepal Life Insurance rights shares open till Asar 3 (for shareholders as of Baisakh 4).
- Chhyangdi Hydropower’s 100% rights shares open till Asar 12 (for shareholders as of Jestha 1).
What’s Next for the Share Market?
The past four weeks show mixed trends:
- Week 1: +2.94%
- Week 2: +0.18%
- Week 3: –1.96%
- Week 4: +0.56%
The consistent volume of trade and rising institutional investment suggest that the market might gradually climb in the coming weeks. Low interest rates and easier margin lending are further boosting momentum.
Still, investors are advised to be cautious. Market movements will depend on:
- Political developments
- New policies and regulations
- Financial performance of listed companies
How Are Global Markets Doing?
- USA Dow Jones: +0.79% (1-month +1.96%)
- S&P 500: +0.97% (1-month +2.70%)
- Japan Nikkei: –0.51% (1-month –0.91%)
- China Shanghai Index: –0.35% (1-month +0.06%)
- India BSE Sensex: –1.65% (1-month –0.03%)
While global trends vary, Nepal’s hydropower boom has sparked hope among investors—and may just be the start of a longer upward journey.
