NEPSE slides 43.89 points as flood-hit hydropower, insurance stocks face heavy selling

The stock market came under heavy selling pressure on Monday, with the NEPSE index falling 43.89 points, or about 1.72%, to close at 2,513.42.

Market turnover also declined from NRs 3.78 billion in the previous session to NRs 3.65 billion. A total of 93.22 million shares of 347 listed securities changed hands.

Market breadth was strongly negative, with 253 companies declining, 21 advancing and 4 remaining unchanged.

The non-life insurance sector recorded the steepest decline, falling 5.03%, followed by the “Others” group at 3.30% and hydropower at 2.94%. These sectors have remained under pressure following the severe flooding in Rasuwa, which significantly affected more than a dozen hydropower projects and is expected to increase insurance-related claims.

Other sectors also declined, including hotels and tourism (-2.44%), life insurance (-1.97%), finance (-1.41%), investment (-1.19%), microfinance (-1.14%), trading (-1.11%), banking (-1.00%) and development banks (-0.96%).

In contrast, the manufacturing and processing sector gained 0.70%, supported by gains in cement stocks amid expectations that reconstruction activity following the floods could boost cement demand. All five listed cement companies advanced.

Among individual stocks, Upakar Laghubitta posted the largest gain, rising 13.16% to NRs 2,725. Ghorahi Cement gained 7.57% to NRs 398, while Palpa Cement and SY Panel also recorded gains.

Hydropower stocks were among the biggest losers. Mailung Khola Hydropower fell 14.98% to NRs 276.30, triggering a negative circuit. Rasuwagadhi Hydropower declined 11.76%, while Chilime Hydropower and Mandoo Hydropower dropped 10.49% and 9.30%, respectively.

Shivam Cement was the most actively traded stock, with shares worth NRs 263.8 million changing hands. Its share price rose 2.15% to NRs 664. Sarvottam Paints ranked second with turnover of NRs 159.1 million.

Monday’s session reflected continued investor concern over the financial fallout from the recent floods, particularly for hydropower and insurance companies, while cement stocks benefited from expectations of reconstruction-driven demand.