Kathmandu, September 1
The Nepal Stock Exchange (NEPSE) experienced a significant drop on Sunday as the index fell below the 2700-point mark. The NEPSE index declined by 53.63 points, closing at 2695.93, marking a sharp decrease from the last trading day.
Despite an initial rise that saw the index peak at 2781 points within the first 12 minutes of trading, the gains were short-lived. The total trading volume also saw a reduction, with transactions totalling Rs 10.51 billion, down from Rs 12.24 billion recorded the day before.
Out of the listed companies, 31 saw an increase in their stock prices, while 209 companies witnessed a decline, and 4 remained unchanged. Most sectoral indices, except mutual funds, ended the day in the red.
The Banking sector recorded a 2.34 per cent drop, Development Banks fell by 1.85 per cent, and the Finance sector declined by 3.44 per cent. The Hotels and Tourism sector dipped by 2.98 per cent, Hydropower by 2.40 per cent, and Microfinance by 1.88 per cent, among others.
In contrast, Super Madi Hydropower’s stock price surged by 10 per cent, leading the gainers. Kutheli Bukhari Small Hydropower followed with an 8.3 per cent increase, while Samling Power and Upper Hewakhola saw gains of 5.8 per cent and 5.2 per cent, respectively.
Conversely, the stocks of People’s Hydropower, Mai Khola Hydropower, and Three Star Hydropower plummeted by 10 per cent. Upakar Microfinance, Nepal Finance, and Midsolu Hydropower also faced significant losses.
Goodwill Finance, Nepal Finance, Himalayan Reinsurance, API Power, and Arun Valley Hydropower emerged as the top performers in terms of trading volume.
Analysts attribute the market’s downturn to ongoing investor concerns and a general lack of confidence in the economic outlook, which has contributed to the reduction in trading activity.
