Nepal Stock Market surges 29.82 points on Sunday as political tensions ease
KATHMANDU: Nepal’s stock market kicked off the week with a strong gain, climbing 29.82 points on Sunday as political unrest subsided. The Nepal Stock Exchange (NEPSE) index closed at 2,693, maintaining its upward momentum following the conclusion of protests by royalist and republican factions.
Market Hits Highs Before Profit-Taking
During midday trading, NEPSE peaked at 2,718 by 1:32 PM, buoyed by optimism after two consecutive days of gains. However, selling pressure emerged later as some investors booked profits, tempering the rally. Trading volume also soared, rising from Saturday’s NPR 5.22 billion to NPR 7.56 billion. Of the listed companies, 222 saw price increases, while 22 declined.
Analysts attribute the surge to renewed investor confidence following the resolution of political demonstrations that had rattled markets last week. “The end of protests signaled stability, and the market responded positively,” said financial analyst Suman Shrestha.
Broad Sectoral Gains
Most sectoral indices posted gains, with the investment sector leading at 2.18%, followed by finance (2.01%), hydropower (1.54%), and hotels and tourism (1.41%). Banking and development banks each rose by 0.82%, while life insurance gained 0.85%, non-life insurance 0.78%, microfinance 0.62%, and manufacturing 0.58%. The “others” category surged by 2.08%. The trading sector, however, dipped slightly by 0.26%.
Standout performers included Joshi Hydro, which soared 9.94%, followed by Dordi Khola Hydropower (6.59%), Gurans Laghubitta (5.95%), and Tehrathum Power (5.87%). Conversely, Sayapatri Hydro fell 5.79%, and Samudayik Laghubitta dropped 2.21%.
Top Traded Stocks
High trading activity was recorded in Himalayan Reinsurance, Nepal Reinsurance, NRN Infrastructure, CEDB Holdings, and Guardian Micro Life Insurance, reflecting strong investor interest in reinsurance and infrastructure stocks.
A Sustained Rally?
The NEPSE index has now risen for three consecutive days, a streak bolstered by robust trading volumes and broad sectoral growth. “The market’s resilience post-protests is encouraging, but profit-taking suggests caution among investors,” noted Shrestha. The midday peak of 2,718—the highest in recent sessions—hints at potential for further gains, though analysts warn that sustained growth depends on economic fundamentals and political stability.
Sunday’s performance follows a volatile period marked by street demonstrations over Nepal’s governance structure. With tensions eased, investors appear to be refocusing on sectoral opportunities, particularly in hydropower and finance, which have shown consistent strength.
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