Market falls for fifth straight session amid flood concerns

The stock market extended its losing streak for a fifth consecutive session on Thursday, with the Nepal Stock Exchange (NEPSE) index falling 1.04 points, or 0.04%, to close at 2,557.31. The decline was led mainly by non-life insurance and hydropower stocks, as investors reacted to the damage caused by recent flooding in the Bhotekoshi River area.

The non-life insurance sub-index dropped 2.04%, following a 3.90% decline a day earlier. The group has now fallen by nearly 6% over the past two trading sessions. Hydropower stocks also declined 0.55%.

The recent flood damaged more than a dozen hydropower projects and swept away vehicles, containers and buildings. The damage is expected to increase the financial liabilities of insurance companies, particularly non-life insurers, weighing on investor sentiment.

Hydropower projects affected by the floods have also been forced to suspend electricity generation. Business operators estimate that over 500 electric vehicles and more than 200 containers carrying goods imported ahead of the Dashain and Tihar festivals were swept away.

Among individual stocks, Upper Hewakhola Hydropower recorded the steepest decline, falling 9.45% to NRs 604 per share. Trishuli Jal Vidyut dropped 9.23% to NRs 354, while Emerging Nepal and Rasuwagadhi Hydropower each declined 8.38%.

Trading activity also weakened. Total turnover fell to NRs 3.78 billion from NRs 4.77 billion on Wednesday. A total of 106.26 million shares of 348 securities changed hands.

Shivam Cement recorded the highest turnover at NRs 217.5 million, followed by Nepal SBI Bank at NRs 166.6 million and Chilime Hydropower at NRs 160.7 million.

Despite the overall decline, 146 companies gained, while 118 declined and 15 remained unchanged.

Manufacturing and processing stocks were among the better performers, rising 1.75%, supported by gains in cement companies. Sarvottam Paints gained 15% to Rs. 1,394.80 per share, while Ghorahi Cement and Sonapur Minerals & Oil also posted strong gains.

Of the 13 sectoral indices, five closed lower. The mutual fund index recorded the largest decline, falling 3.12%, while non-life insurance and hydropower were also among the major laggards.