Nepal’s stock market soars, setting new records in trading volume

KATHMANDU: The Nepal Stock Exchange (NEPSE) is on a continuous upward trajectory, achieving record-breaking trading volumes. Analysts indicate that the market is climbing towards a historic high, driven by significant increases in trading activities.

On Wednesday, the NEPSE index surged by 64.26 points, reaching 2760.91 points. The shares of 191 companies increased in value, resulting in transactions worth NPR 21.91 billion, the highest single-day trading volume ever recorded.

A total of 50,967,951 shares were traded. Despite the market’s rise, 44 companies saw a decrease in share prices, while 7 companies remained unchanged.

Previously, the NEPSE index reached its all-time high of 3199.03 points on Bhadra 2, 2078, with trading volumes exceeding NPR 21.31 billion. The previous highest trading volume was recorded on Shrawan 31, 2078, at NPR 21.64 billion.

Investor confidence remains robust, leading to two positive circuit breaks on Sunday, which propelled the market up by 113.07 points. However, a correction followed on Monday with a decline of 20.63 points. The market rebounded on Tuesday, increasing by 35.55 points to reach 2696.65 points.

The monetary policy introduced by the Nepal Rastra Bank for the current fiscal year 2081/82 has positively influenced the capital market, boosting investor enthusiasm.

Organized investors have shown increased optimism since the release of the monetary policy last Friday, resulting in a market surge on Sunday. The market has continued to rise since then.

Organized investors believe that the continuous growth will surpass the all-time high of 3199 points set on Bhadra 2, 2078.

The market had been fluctuating between 1800 and 2000 points for a long time, but it is now consistently moving upwards. Analysts suggest that the current growth is driven by a combination of investor psychology and supportive policies, indicating a move towards new heights.