Quiet Surge: NEPSE Edges Higher, But Market Activity Slows
NEPSE began the week with a marginal gain of 0.01%, closing at 2,655.85, while overall trading volume declined to NPR 11.44 billion. Sector performance was mixed, with five sectors gaining and eight declining. Hydropower stocks led trading, and four companies hit the upper circuit. Despite the uptick, cautious investor sentiment suggests the market remains in a transitional phase.\ \ \
The Nepal Stock Exchange (NEPSE) opened the week with a slight upward movement, although overall trading activity declined. On Sunday, the NEPSE index recorded a marginal gain of 0.01%, rising by just 0.47 points to close at 2,655.85. In contrast, the Sensitive Index, which tracks blue-chip companies, fell by 0.14%, settling at 453.41 points. Despite the index’s minor increase, trading volume dipped compared to the previous session. A total of over 25.3 million shares from 308 listed companies were traded, amounting to more than NPR 11.44 billion. This marks a decrease from last Thursday’s turnover, which had exceeded NPR 12.51 billion.
Among the 13 listed sectors on NEPSE, five closed in the green while eight ended in the red. The Manufacturing and Processing sector led the gainers with a 1.47% increase. Other sectors that posted gains included Trading (1.08%), Hydropower (0.96%), Development Banks (0.48%), and Non-Life Insurance (0.07%). On the other hand, the Investment sector recorded the highest loss, falling by 0.76%. Other declining sectors included Banking (-0.44%), Finance (-0.59%), Life Insurance (-0.54%), Microfinance (-0.31%), Mutual Funds (-0.41%), Hotels and Tourism (-0.06%), and Others (-0.46%).
In terms of trading volume, Sanima Mai Hydropower topped the chart with transactions exceeding NPR 890 million. Other heavily traded stocks included Ngadi Group Power (NPR 872 million), Butwal Power Company (NPR 646 million), Radhi Bidyut Company (NPR 507 million), and Mountain Hydro Nepal (NPR 503 million). Four companies—Green Development Bank, Pure Energy, Chhyangdi Hydropower, and Barun Hydropower—hit the upper circuit limit, indicating maximum daily price gains. Notable gainers also included Union Hydropower, which rose by 9.34%, Rapti Hydropower by 7.27%, and Sanima Middle Tamor by 6.99%. Conversely, Nepal Hydro Developers saw the biggest decline of the day, falling by 4.43%, followed by Mid Solu Hydropower (-3.84%) and Dordi Khola Hydropower (-3.40%).
Despite the slight rise in the index, the overall decline in trading volume and mixed sector performance reflect a cautious sentiment in the market. With IPOs drawing liquidity and traders becoming increasingly active, the market appears to be in a transition phase. Whether NEPSE will gain solid momentum or continue its sideways movement remains to be seen.