NEPSE Gains Amidst Lower Turnover: Nepal Stock Market Recovery Analysis
9th April 2025, Kathmandu
Nepal’s stock market saw a slight recovery on Wednesday. The NEPSE index rose by 9.66 points to close at 2,676.28. This follows two straight days of decline. However, total trading volume decreased compared to the previous day.
NEPSE Gains Amidst Lower Turnover
Trading Activity Declines
Despite the index gain, trading activity dropped. On Tuesday, investors traded shares worth NPR 5.30 billion. On Wednesday, that figure fell to NPR 4.48 billion. A total of 1,738,82 units of shares changed hands through 45,094 transactions involving 317 companies.
Out of the traded stocks, 154 gained, 90 declined, and 1 remained unchanged.
Strong Performers of the Day
Some stocks performed well during the session. Nepal Micro Insurance hit the positive circuit limit, showing high investor interest. Veen Nepal Laghubitta rose by 8%, and Bottlers Nepal (Balaju) increased by over 5%.
Stocks That Fell
Not all companies saw gains. Sindhu Bikash Bank experienced the sharpest decline. Its stock price fell by 7.47%, making it the biggest loser of the day.
Sector-Wise Breakdown
Out of the 13 sectoral indices, 11 moved upward. The Hotel and Tourism sector showed the strongest growth with a 2.44% increase. Similarly, the Investment and Manufacturing & Processing sectors gained over 1% each.
In contrast, the Banking and Trading sectors recorded slight declines. This shows a mixed trend across different industries.
Market Sentiment
The market improved slightly after falling in the previous two sessions. However, lower turnover suggests that investors remain cautious. Some traders may have booked profits after earlier gains. Others might be waiting for policy updates or economic signals.
Conclusion
Wednesday’s session brought a small rise in the NEPSE index. But the decrease in trading volume signals lower investor participation. While more companies saw gains than losses, total turnover dropped by nearly NPR 82 crore from the previous day.
Investors and analysts will now watch if the positive trend continues or if uncertainty will keep activity low in the coming days.
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