NEPSE gains 11.9 points as market trades NRs 5.49 billion

Nepal’s stock market rose 11.93 points on Thursday to close at 2,624.36, while trading activity increased following the government’s decision to halve the capital gains tax on share sales.

A total of NRs 5.49 billion worth of shares changed hands during the session, compared with NRs 5.38 billion on Wednesday. Investors traded 136.1 million shares of 339 listed securities.

The market response to the tax reduction was relatively modest. Finance Minister Dr. Swarnim Wagle had unveiled a 21-point action plan for stock-market reforms, including a proposal to reduce the capital gains tax, earlier this week. NEPSE had surged 48.57 points the following day but fell 21.19 points on Wednesday. The Cabinet subsequently approved the tax reduction on Wednesday afternoon.

Of the companies traded on Thursday, share prices of 177 companies increased, while 85 declined and 16 remained unchanged.

Dhaulagiri Microfinance recorded the biggest gain, rising 12.43% to NRs 1,248 per share. Narayani Development Bank gained 6.44% to NRs 793.

Hathway Investment recorded the largest decline, falling 2.97% to NRs 588, while Sanima Large Cap Fund dropped 2.95% to NRs 9.20 per unit.

Siddhartha Bank was the most actively traded company, with shares worth Rs 336.2 million changing hands at NRs 447 per share, up 3.71% from the previous session. Shivam Cement ranked second, recording turnover of NRs 272.6 million at NRs 685 per share.

Of the 13 sectoral indices, 11 advanced, while the investment and other sectors declined. The life insurance index posted the largest sectoral gain, rising 1.08%.

Overall, Thursday’s session showed a moderate positive response to the government’s capital gains tax decision, with the benchmark index and trading turnover both moving higher.