NEPSE plunges 32.65 points amid political uncertainty, turnover drops 19.25%

The stock market witnessed a significant decline on Monday, with the Nepal Stock Exchange (NEPSE) index falling 32.65 points (1.21%) to close at 2,657.50.

On Monday, market turnover also declined by 19.25% compared to the previous trading session, falling to NRs 7.18 billion from NRs 8.89 billion.

Monday’s decline followed a strong performance last week, when the NEPSE index gained nearly 60 points. Weekly turnover also surged 51.35% to NRs 34.72 billion, up from NRs 22.94 billion in the previous week. The simultaneous rise in the benchmark index and trading turnover reflected increased market activity and stronger investor participation during the week.

The decline also comes amid heightened political uncertainty following a turbulent period in the country, marked by controversies involving the Supreme Court and Nepal Police, as well as raids on media offices and the detention of journalists. These developments have added to concerns over the country's broader political environment, creating an uncertain backdrop for investors.

A total of 19.82 million shares of 343 listed securities were traded during the session. Share prices of 252 companies declined, while 21 companies recorded gains and six remained unchanged.

All 13 sectoral indices ended the session in negative territory. The Development Bank sector recorded the steepest decline, falling 1.88%. Non-life insurance dropped 1.72%, while the Others sector declined 1.61%.

Among individual stocks, Beni Hydropower recorded the highest gain, rising 13.58% to NRs 806.10 per share. Makar Jitumaya Suri Hydropower followed with an 8.77% increase to NRs 460 per share.

On the losing side, Sanima Large Cap Fund posted the biggest decline, falling 4.86% to NRs 9.21 per unit. Jhapaa Energy dropped 4.11% to NRs 910 per share.

Ghalemdi Hydropower led the market in trading turnover, with shares worth NRs 376.3 million changing hands at NRs 335 per share. Global IME Bank ranked second, recording transactions worth NRs 294.2 million at NRs 267.10 per share.

The broad-based decline in share prices, accompanied by a sharp drop in trading turnover, reflected widespread selling pressure in the stock market.