Market continues its downward trend as turnover falls sharply

The market extended its losing streak for the sixth day on Monday, with the benchmark NEPSE falling by 16.54 points to close at 2,632.96. This marks the sixth consecutive session of decline, with selling pressure dominating trading throughout the day.

Market turnover also contracted significantly. Total trading volume dropped to about NNRs 2.67 billion, down from NNRs 3.94 billion in the previous session. A total of 35.1 million shares from 351 listed companies were traded.

Market breadth remained weak, with 240 stocks declining, 29 gaining, and 6 remaining unchanged. All sectoral indices closed in negative territory, with non-life insurance among the hardest hit, followed by manufacturing, hotels and tourism, and finance sectors.

Despite the broad decline, a few stocks recorded strong gains, with four companies hitting the positive circuit limit, including hydropower and microfinance firms such as Taksar Pikhuwakhola Hydropower, Snow River, Yambaling Hydropower, and Dhaulagiri Laghubitta. On the losing side, Swabhiman Laghubitta led the decliners, while Ncell and Sopana Pharmaceuticals also posted notable losses.

Global IME Bank remained the most actively traded stock of the day, followed by Sopana Pharmaceuticals, reflecting selective buying interest even in a bearish market.

Investor sentiment weakens on policy uncertainty

According to an analyst, market sentiment was pressured by concerns over a proposed provision in the draft Company Act 2083, which suggested a 1% share transfer fee on transactions above NNRs 2.5 million.

Although the government has reportedly initiated the process of withdrawing or revising the controversial proposal following strong opposition from stakeholders, the initial announcement triggered investor anxiety.