NEPSE continues downtrend, sheds another 20 points, turnover drops to NRs 3.27 billion

The stock market extended its decline on Monday, with the Nepal Stock Exchange (NEPSE) index falling 20.48 points, or around 0.79%, to close at 2,566.76 points.

Trading activity also weakened, with total turnover falling to NRs 3.27 billion, down from around NRs 4.29 billion on Friday. A total of 90.03 million shares of 359 listed securities changed hands through 44,777 transactions.

The market was under pressure throughout Monday’s trading session, with the NEPSE index continuing to decline from the opening until the close. Dividend-season price adjustments also contributed to the weakness in the broader index.

Of the companies traded on Monday, 242 saw their share prices decline, while only 32 recorded gains. Prices of four companies remained unchanged.

All but one of the 13 sectoral indices closed lower. The Trading sector was the sole gainer, rising 10.71 points. The Finance sector recorded the steepest percentage decline, falling 1.10%.

Other major sectoral declines included Life Insurance, down 93.81 points; Manufacturing and Processing, down 104.51 points; Hotels and Tourism, down 73.28 points; Non-Life Insurance, down 60.99 points; and Hydropower, down 36.95 points.

Among individual stocks, Trishuli Jal Vidyut Company recorded the largest decline, with its share price falling 8.84% to NRs 274. Sindhu Bikash Bank was another major decliner, dropping 5.80% to NRs 422.

In contrast, investors showed strong interest in debt instruments. The 10.30% Standard Chartered Bank Debenture gained 5.75%, while the 10% Nepal SBI Bank Debenture rose 4.98%.

Ghalemdi Hydro Limited was the most actively traded company, with shares worth around NRs 22.87 million changing hands. Hathway Investment Nepal followed with turnover of approximately NRs 8.49 million.

Monday’s decline marks a continuation of the market’s recent weakness, with NEPSE having fallen 11 points in the previous trading session on Friday. 

Market sentiment has remained subdued following a recent decision by the Securities Board of Nepal (SEBON) requiring prior disclosure or approval for founders holding more than 5% of a company’s shares to sell their holdings. Market participants say the measure has weakened investor confidence, particularly as investors anticipate increased selling by founders after the expiry of lock-in periods.

The parliamentary Finance Committee has also directed SEBON to reconsider the provision. However, Monday’s market performance showed little sign of a recovery in investor sentiment.