Stock Market Dips: Nepal Stock Exchange Sees Significant Decline
The Nepal Stock Exchange (NEPSE) experienced a bearish trend on Monday, the second trading day of the week. The NEPSE Index, a key indicator of the stock market performance, plummeted by 35.99 points, closing at 2672.25. This market correction reflects a decrease in investor confidence, as seen across various sectors.
The Sensitive Index, which measures the performance of “A” class companies, also saw a decrease, dropping by 5.21 points to reach 462.29. The Float Index and Sensitive Index also saw significant declines. This overall downward movement indicates a negative market sentiment across the board.
Despite the market downturn, trading activity remained robust. A total of 320 companies saw transactions, with 11,714,543 shares changing hands. The total trading volume reached NPR 5.23 billion, a significant increase of NPR 831.0 million compared to Sunday’s figures. Sunday saw a total of 334 companies trade with 11,124,845 shares being bought and sold, leading to a total trading volume of NPR 4.40 billion. This highlights ongoing market activity, even amidst the declining prices. The total market capitalization stood at NPR 44.67 trillion.
Stock market analysis reveals that on Monday, only 22 companies witnessed a rise in their stock prices, while a considerable 229 companies experienced a decrease in their stock values.
Analyzing sectoral performance, all 13 groups experienced declines. Key sectors that were affected include:
- Commercial Banks: Decreased by 16 points.
- Development Banks: Decreased by 79 points.
- Finance Companies: Decreased by 22 points.
- Hotels and Tourism: Decreased by 91 points.
- Hydropower: Decreased by 47 points.
- Investment Companies: Decreased by 1 point.
- Life Insurance: Decreased by 113 points.
- Manufacturing and Processing: Decreased by 92 points.
- Microfinance: Decreased by 57 points.
- Non-Life Insurance: Decreased by 155 points.
- Trading Companies: Decreased by 134 points.
- Other Groups: Decreased by 37 points.
The most active companies by trading volume included Nepal Reinsurance, Union Hydropower Limited, Universal Power Company, Himalayan Reinsurance, and United Modi Hydropower. Nepal Reinsurance saw transactions worth NPR 306.8 million, followed by Union Hydropower Limited with NPR 240.9 million, Universal Power Company with NPR 232.4 million, Himalayan Reinsurance with NPR 219.2 million, and United Modi Hydropower with NPR 165.4 million. Investors should conduct their own financial analysis and stay informed about the latest stock market news before making any investment decisions. The stock market volatility can be influenced by various factors like economic indicators, global events, and company performance. Stay tuned for further updates on the stock market.
