KATHMANDU: Nepal’s stock market extended its rally on the first trading day of the week, with the benchmark NEPSE Index climbing 41.70 points, or 1.55 percent, to close at 2,719.27.
The Sensitive Index, which tracks the performance of large and blue-chip companies, also rose 0.90 percent to 472.60.
A total of 12.25 million shares of 343 listed companies changed hands during the session, generating a turnover of more than Rs 5.51 billion.
Market fundamentals improving
Hari KC, President of the Nepal Investors’ Association, said the market’s recent gains were supported by improving fundamentals and growing policy clarity.
“The market had already corrected to a level where there was little room for further decline. That is one of the reasons why it has posted strong gains over the past two trading sessions,” KC said.
He added that clearer policy signals from the government and regulatory authorities had boosted investor confidence, while the end of fiscal year-end pressures had encouraged investors to return to the market.
“However, trading volume has not increased in line with the market’s rise,” he noted.
KC also said the increase in the capital gains tax from the start of the new Nepali month of Shrawan had slightly affected trading activity.
“The current trading reflects genuine investor participation. Previously, market manipulation by coordinated groups was more common, but such practices appear to have declined. The government and regulators are now taking a more positive approach toward the capital market, and investors also need to play a more constructive role in maintaining market momentum,” he said.
Nearly all sectors end higher
Of the 13 sectoral indices, 12 closed in positive territory, with only the Mutual Fund sector posting a decline of 0.02 percent.
The Manufacturing and Processing sector led the gains, rising 3.21 percent, followed by Others (2.81 percent), Hydropower (2.79 percent), Hotels and Tourism (1.98 percent), Development Banks (1.48 percent), Trading (1.14 percent), Finance (0.93 percent), Life Insurance (0.84 percent), Banking (0.55 percent), Non-Life Insurance (0.44 percent) and Microfinance (0.37 percent).
Akhu Khola Hydropower tops turnover
Akhu Khola Jalvidhyut Company recorded the day’s highest turnover, with shares worth more than Rs 291.5 million traded.
It was followed by Reliance Spinning Mills (Rs 244.6 million), Ridi Power Company (Rs 206.6 million), Corporate Development Bank (Rs 190.8 million), and National Hydropower Company (Rs 158.9 million).
Two companies hit upper circuit
Only two companies hit the daily upper price limit during the session: Everest Color Limited and Ridge Line Energy.
Among the top gainers, Shrinagar Agritech surged 10.95 percent, Solu Hydropower advanced 9.56 percent, and Reliance Spinning Mills gained 9.31 percent.
On the losing side, Aatmanirbhar Laghubitta Bittiya Sanstha posted the steepest decline, falling 6.86 percent, followed by Corporate Development Bank, which dropped 6.85 percent, and Laxmi Unnati Fund, down 5.15 percent.
