Kathmandu, June 2
The Nepal Stock Exchange (NEPSE) index rose by 1.60 points to close at 2,694 following the announcement of the national budget. Trading volume also saw an uptick, with a total turnover of Rs 9.22 billion compared to Rs 8.58 billion the previous day.
While the share prices of 115 companies increased, 133 companies saw a decline. Among the various sectors, the hotel and tourism sector gained 2.39% and the investment sector rose by 2.28%, making them the top performers of the day. Analysts attribute this surge to provisions in the new budget.
The budget proposes income tax exemptions for hotels and resorts by recognising them as productive industries. It also outlines provisions to facilitate listed companies and institutional investors in the investment sector to invest in equities, bonds, and other securities of industries deemed of national priority.
Other sectors that recorded gains include development banks (0.29%), finance (0.18%), life insurance (0.23%), and others (0.36%). In contrast, sectors such as banking (0.59%), hydropower (0.35%), manufacturing and processing (0.38%), microfinance (0.12%), non-life insurance (0.16%), and trading (0.35%) witnessed declines.
Two companies—Om Megashree Pharmaceuticals and Pure Energy—hit the upper circuit with a 10% gain. Saptakoshi Development Bank rose by 8.31%, Nyadi Hydropower by 7.27%, and Corporate Development Bank by 6.35%. On the losing side, Bhugol Energy dropped by 6.45%, Bottlers Nepal Balaju by 3.20%, and Vin Nepal Laghubitta by 3.04%.
The top five companies in terms of trading volume today were Ngadi Group, Radhi Power, Universal Power, HIDCL, and Butwal Power Company.
