Kathmandu, August 31
The Nepal Stock Exchange (NEPSE) index fell 43.89 points on Monday, the first trading day of the week, to close at 2,513 points.
Trading turnover also declined slightly. While shares worth Rs 3.78 billion were traded on the previous trading day, turnover stood at Rs 3.64 billion on Monday.
The market remained in the red throughout the trading session. The prices of only 21 companies increased, while 253 declined and four remained unchanged.
Three sectors have faced particularly strong pressure since the devastating floods last Wednesday, and the trend continued on Monday.
The non-life insurance sector suffered the steepest decline, falling 5.03%. The Others group dropped 3.30%, while the hydropower sector fell 2.94%.
More than a dozen hydropower projects have been severely affected by the floods. Non-life insurance companies have also come under pressure as they are expected to pay claims for vehicles, homes and hydropower projects damaged by the disaster.
The Others group includes Nepal Reinsurance Company and Himalayan Reinsurance Company.
Besides these three sectors, the banking sector fell 1.00%, development banks 0.96%, finance 1.41%, hotels and tourism 2.44%, investment 1.19%, life insurance 1.97%, microfinance 1.14% and trading 1.11%.
The manufacturing and processing sector was the only major sector to post a gain, rising 0.70%.
Cement companies saw positive movement amid expectations that demand for cement will increase during post-flood reconstruction.
Mailung Khola Hydropower fell 14.98%, Rasuwagadhi Hydropower 11.76%, Chilime Hydropower 10.49% and Mandu Hydropower 9.30%.
