NEPSE closes slightly lower, turnover reaches two-month high

The stock market extended its post-monetary policy decline on Friday, with the Nepal Stock Exchange (NEPSE) index closing lower for a third consecutive session despite a sharp increase in trading activity.

The benchmark index edged down 1.13 points to settle at 2,600.78. Although the market rallied by nearly 20 points shortly after trading opened, the gains faded as selling pressure intensified during the session.

Over the past three trading days, NEPSE has shed nearly 50 points, following the announcement of the Nepal Rastra Bank's monetary policy on Tuesday.

Despite the decline in the index, investor activity remained strong. Daily turnover rose to NRs 6.86 billion, up from NRs 4.61 billion in the previous session, making it the highest single-day turnover in more than two months. A total of 106.6 million shares of 367 listed securities were traded during the day.

Market breadth remained negative, with 135 companies posting losses, 120 advancing, and 19 closing unchanged.

Atmanirbhar Laghubitta Bittiya Sanstha emerged as the day's top gainer, with its share price soaring 10.66% to NRs 6,416. Kumari Equity Fund climbed 9.09% to NRs 11.16 per unit, while Alanga Hydropower gained 6.92%.

On the losing side, Bhagawati Hydropower Development Company recorded the steepest fall, dropping 7.84% to NRs 516.10 per share. NIBL Stable Fund also declined 7.63%, ending the day at NRs 7.63 per unit.

The 8.5% Nepal Bank Debenture 2087 was the most actively traded security, generating transactions worth NRs 899.1 million at NRs 1,151 per unit. The 8.5% RBBL Debenture 2083 ranked second, with turnover of NRs 698.5 million.

Among the 13 sectoral indices, six advanced while seven declined. The Trading sector posted the strongest gain of 1.27%, while Banking, Development Bank, Finance, Hotels and Tourism, Hydropower, Life Insurance, and the Others sub-indices ended lower.

Market observers say investors remain cautious following the central bank's latest monetary policy, particularly new provisions allowing banks and financial institutions to determine share-backed lending limits based on their financial strength. Selling pressure also increased ahead of the fiscal year-end, as investors sought to free up funds for loan repayments due by the end of the month.

Although the benchmark index continued to weaken, Friday's robust turnover indicates that investor participation remains active as the market digests the policy changes.