After nine consecutive sessions of gains, the Nepal Stock Exchange (NEPSE) index saw a 13.62-point correction on Monday, March 3, to close at 2,876.66.
During intraday trading, the index had surged to a high of 2,929.21 points before retreating. Over the past nine sessions, NEPSE had gained a total of 211.78 points. However, profit booking by investors triggered a market correction, as traders locked in gains after the recent rally. Analysts note that short-term investors often sell stocks following a price increase, adding pressure on the market. Additionally, technical traders selling shares after minor gains further contributed to the decline.
Market experts emphasize that periodic corrections are essential for long-term stability and sustainable growth.
Trading volume on the week’s second trading day remained robust. On Sunday, the turnover surpassed Rs 14.25 billion, which increased slightly to Rs 14.28 billion on Monday.
Sectoral indices, however, ended in the red, with the Sensitive Index dropping by 0.76%, the Float Index by 0.55%, and the Sensitive Float by 0.81%. A total of 300 securities were traded, with 31.24 million shares exchanged in 139,555 transactions.
Among the top gainers, Guardian Micro Life Insurance hit the upper circuit limit, surging to 1,256.40 per share. Dibyashwori Hydropower followed with a 9.45% increase, closing at Rs 417 per share.
On the losing side, Samaj Laghubitta Bittiya Sanstha plunged by 10% to Rs 2,866.60 per share, while Upakar Laghubitta Bittiya Sanstha dropped 7.24% to Rs 4,638 per share.
Himalayan Reinsurance dominated trading activity, leading in transaction volume with trades exceeding Rs 1.38 billion. Its stock price stood at Rs 1,093 per share at the end of the session. Nepal Reinsurance followed with transactions worth Rs 734.2 million.
Sector-wise, five out of 13 indices recorded gains, while the remaining declined. The Others Indes led the gains with a 1.68% increase, whereas the Hotels and Tourism Index suffered the sharpest drop, falling by 1.88%.
