Kathmandu, August 26
Nepal’s stock market fell sharply on Wednesday, with the benchmark NEPSE index dropping 35.92 points to 2,558 points, as shares of hydropower companies were hit following the damage caused by floods in Rasuwa and surrounding areas.
Total turnover stood at Rs 4.77 billion, higher than the previous trading session. Of the companies traded, 23 gained, 252 declined and three remained unchanged.
The hydropower sub-index fell 2.84%, making it one of the worst-performing sectors after floods from the Tibetan side affected more than a dozen hydropower projects in Rasuwa and neighbouring areas.
The non-life insurance sub-index also dropped 3.90%, as investors reacted to the potential insurance liabilities arising from damage to hydropower infrastructure.
Other sectors also ended lower, including banking (-0.74%), development banks (-0.84%), finance (-1.10%), hotels and tourism (-0.54%), investment (-1.31%), life insurance (-1.52%), manufacturing and processing (-0.40%), microfinance (-0.91%), others (-1.44%) and trading (-0.04%).
Flood-hit hydropower companies among biggest losers
Shares of several hydropower companies affected by the floods recorded significant declines.
Rasuwagadhi Hydropower fell 15%, while Mailung Khola Hydropower dropped 14.99%, Trishuli Hydropower 12.95%, Upper Mailung Khola 11.56% and Sanjen Hydropower 11.18%.
Among the gainers, Sarbottam Paints rose 15%, while Upper Hewakhola gained 10.43% and Kalinchowk Hydropower increased 3.21%.
Chilime Hydropower, Sanima Middle Tamor, Sahas Urja, Solu Hydropower and Ridi Power were among the most actively traded companies.
The market decline came as authorities reported extensive damage to hydropower projects following the Rasuwa floods, with the Nepal Electricity Authority’s preliminary assessment putting the total capacity of affected operational and under-construction projects at 748 MW.
