Market extends rally, NEPSE climbs above 2,700, PM assures investors

The stock market extended its strong rally on Monday, with the benchmark NEPSE Index rising 41.70 points (1.55%) to close at 2,719.24, its highest level in about a month, as investor sentiment strengthened following Prime Minister Balendra Shah's meeting with capital market stakeholders.

The latest gain follows Friday's 79.74-point surge, taking the index up by 121.44 points over the first two trading sessions of the new fiscal year. Market turnover also increased to NRs 5.5 billion, compared with NRs 4.57 billion in the previous session.

A total of 343 securities worth 12.23 million shares changed hands during the day. Share prices of 238 companies advanced, while 32 declined and six remained unchanged, reflecting broad-based buying across the market.

Everest Color, the recent entry in the NEPSE, was the day's biggest gainer, jumping nearly 15%, followed by Ridgeline Energy, which rose more than 14%. Aankhu Khola Hydropower topped the trading chart with transactions worth around NRs 291.5 million, while Reliance Spinning Mills ranked second.

The market's upbeat performance came after Prime Minister Shah held a high-level meeting with officials from the Securities Board of Nepal (SEBON), the Nepal Stock Exchange (NEPSE), stockbrokers and investor representatives, where he reaffirmed the government's commitment to developing the country’s capital market.

According to reports, Shah said the government views the stock market as an important platform for capital formation, job creation and economic growth, adding that efforts are underway to strengthen investor confidence through coordination among relevant agencies. He encouraged investors to invest without fear and assured stakeholders that the government is committed to implementing reforms to improve the market.

The meeting brought together SEBON Chairman Dr. Gopal Bhatta, NEPSE Chairman Amrit Lamsal, Stock Brokers Association of Nepal President Sagar Dhakal, investor representative Ambika Prasad Paudel, broker Priyaraj Regmi, former NEPSE Chief Executive Officer Sitaram Thapaliya and other market participants.

During the discussion, brokers and investors urged the government to introduce structural reforms, including reviewing the current 10-unit IPO allocation policy, implementing a book-building mechanism, allowing intraday and short-selling facilities, expanding margin lending through brokers, clarifying capital gains tax provisions and modernizing NEPSE's trading infrastructure.

According to participants, the Prime Minister assured them that his office would coordinate with the Ministry of Finance, Nepal Rastra Bank, SEBON and NEPSE to address long-standing issues facing the capital market. Stakeholders described the meeting as the first of its kind, bringing together the Prime Minister, regulators, brokers and investors to discuss capital market reforms.

Market participants said the Prime Minister's positive remarks and commitment to reforms helped reinforce investor confidence, contributing to Monday's continued rally.