NEPSE falls to eight-month low as index drops 30 points; turnover rises a recent high

The stock market continued its downward movement on Monday, with the Nepal Stock Exchange (NEPSE) index falling to an almost eight-month low amid widespread selling pressure.

The benchmark NEPSE index declined 30.60 points, or 1.17%, to close at 2,570.18 points. The index reached its lowest level since Mangsir 4, when it stood at around 2,560 points.

The market extended its decline for the fourth consecutive trading session, with all sectoral indices ending in negative territory.

Despite the fall in the index, investor activity increased. Total turnover rose to NRs 7.46 billion from NRs 6.86 billion in the previous session. A total of 41.72 million shares of 368 securities were traded through 51,295 transactions.

Market breadth remained weak as 249 companies recorded losses, while 22 companies gained and four remained unchanged.

The Trading sector index recorded the largest decline, falling 2.30%, followed by the Hotels and Tourism sector, which dropped 1.99%. Banking, hydropower, finance, insurance, manufacturing, investment, and microfinance sectors also closed lower.

Among individual stocks, Samudayik Laghubitta Bittiya Sanstha was the top gainer, with its share price increasing 5.37% to NRs 1,197 per share.

On the losing side, Upakar Laghubitta Bittiya Sanstha recorded the biggest decline, dropping 11.28% to NRs 2,839 per share. Buddhabhumi Nepal Hydropower also fell 7.47% to NRs 275 per share.

Debt instruments dominated the turnover chart. The NMB Debenture 8.50% 2087/88 recorded the highest trading value, with transactions worth NRs 484.6 million. The 10% NIC Asia Debenture 2085/86 followed with turnover of NRs 466.5 million.

Market capitalisation declined to NRs 4.416 trillion from NRs 4.469 trillion in the previous session as investor sentiment remained cautious.