Market holds steady as trading activity eases

The market remained broadly unchanged over the past two trading sessions, with the NEPSE index posting only marginal gains on both Tuesday and Wednesday. The benchmark ended Wednesday at 2,642.40 points, up just 1.34 points over the two days, while declining turnover and weak market breadth pointed to continued investor caution.

On Tuesday, NEPSE gained 0.79 points to 2,641.85, following three consecutive sessions of decline. The modest recovery was supported by gains in banking, hotels and tourism, hydropower, investment, life insurance and other sectors. However, the market remained mixed, with 133 stocks advancing, 122 declining and 20 unchanged.

Trading turnover improved to NRs 4.11 billion, from around NRs 3.67 billion on Monday. Hydropower stocks remained the main focus of investors, accounting for about NRs 2.38 billion of total turnover. Solu Hydropower recorded the highest turnover at NRs 448.7 million, followed by Ridi Power at NRs 336.7 million and Ngadi Group Power at NRs 178.6 million.

Upper Lohore Khola Hydropower was the strongest gainer, rising nearly 15% to NRs 436.60 and hitting the positive circuit limit. Upper Lohore Khola’s lock-in period for promoter shares ends this Thursday. Mahila Laghubitta was the biggest loser, falling 14.91% to NRs 1,370.

The market showed little change again on Wednesday, with NEPSE rising just 0.55 points to 2,642.40. Despite the positive index, market breadth was considerably weaker: 102 companies gained, 165 declined and nine remained unchanged.

The investment sector led the gains, climbing 2.21%, while banking, finance, and hotels and tourism also moved higher. Most other sectors ended lower, including hydropower, development banks, life insurance, manufacturing and processing, microfinance, non-life insurance and trading.

Turnover declined sharply to NRs 3.53 billion, down from Tuesday’s NRs 4.11 billion. Hydropower remained the most actively traded sector, generating about Rs 1.55 billion in turnover. NRN Infrastructure Development led individual companies with transactions worth NRs 316 million, followed by Central Finance at NRs 224.8 million and Solu Hydropower at around NRs 220 million.

There was also a notable reversal in Upper Lohore Khola Hydropower. After gaining nearly 15% and hitting the positive circuit on Tuesday, the stock fell almost 15% to NRs 371.20 on Wednesday. Meanwhile, Mount Everest Power, which began trading on the NEPSE that day, gained 15% to NRs 345 on its debut.

Overall, the two-day performance suggests that the market is struggling to establish a clear direction. While the NEPSE managed small gains on both sessions, the broader market weakened on Wednesday, with substantially more stocks declining than advancing. The drop in turnover also indicates that investor participation has softened.