NEPSE index recovers with 83-point gain after previous day’s sharp fall

The stock market bounced back on Monday, with the NEPSE index rising by 83.33 points after a steep 105-point drop in the previous session. The benchmark index closed at 2,760 points.

Earlier in the day, Finance Minister Swarnim Wagle met with officials from the Stock Brokers Association of Nepal, stating that the recent market decline had created unnecessary panic among investors. He reassured stakeholders that there was no need for concern.

The minister also emphasised that the upcoming national budget would be transformative and pledged government efforts to improve market transparency. 
Market sentiment appeared to improve following these assurances, contributing to the day’s gains. However, total turnover declined, with transactions amounting to NRs 10.92 billion compared to NRs 12.38 billion in the previous session, which had seen heavier selling pressure.

A total of 264 companies saw their share prices increase, while only four declined and one remained unchanged. All sector indices ended in positive territory, led by hydropower, which surged by 4.59%. The finance sector rose by 4.03%.

Other sectors also posted gains: banking climbed 3.18%, development banks 3.63%, hotels and tourism 3.24%, investment 3.33%, life insurance 2.66%, manufacturing and processing 1.53%, microfinance 2.43%, non-life insurance 2.94%, others 2.36%, and trading 2.40%.

Eight companies recorded a 10% increase in share prices, including Upakar Microfinance, Ridi Power, National Hydropower, Bhujung Hydropower, Super Khudi Hydropower, Rizzline Energy, Suryakunda Hydroelectric, and Hotel Forest Inn. Meanwhile, Corporate Development Bank rose 9.88%, Shivashree Hydropower 9.55%, and Himal Dolakha Hydropower 9.18%.

Reliance Spinning Mills, which had gained 10% in the previous session, came under selling pressure and dropped by 1.60%.