Nepal’s stock market rallied sharply on Tuesday, May 20, buoyed by speculation that the government is poised to appoint a Governor at Nepal Rastra Bank (NRB) later in the day.
The Nepal Stock Exchange (NEPSE) index’s surge comes amid reports that the two major ruling coalition partners—the Nepali Congress and the CPN (UML)—have reached a consensus to name Biswo Poudel as the new central bank chief. The position has remained vacant for over six weeks since the retirement of Maha Prasad Adhikari.
(Biswo Poude Photo: Sunil Sharma/NBA)
Poudel, who was initially a member of the three-person recommendation committee, made a surprise ascent to frontrunner status.
The Nepal Stock Exchange (NEPSE) index jumped 1.86%, or 49.09 points, to close at 2,677.45—its highest single-day gain in recent weeks. On Monday, the index had already edged up by 0.74%, snapping a six-day losing streak.
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Despite the rally, overall trading activity was subdued. Turnover slipped to Rs 7.31 billion from Rs 7.36 billion the previous day. However, trading volume rose, with more than 16.88 million shares changing hands across 73,054 transactions—up from 16.2 million shares and 71,287 transactions on Monday.
Market breadth was overwhelmingly positive: of the 245 traded companies, 229 advanced, 15 declined, and one remained unchanged. All 13 NEPSE sectoral indices ended the day in the green, signaling broad-based gains across sectors.
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The Hotels and Tourism Index led the charge, soaring 3.42%, followed by notable gains in the Development Bank, Hydropower, Finance and Investment indices. The Mutual Fund Index posted the smallest gain at 0.33%.
Notable gainers included Sindhu Bikash Bank Ltd (SINDU) and Saptakoshi Development Bank Ltd (SAPDBL), both of which hit the upper circuit limit. On the losing end, Wean Nepal Laghubitta Bittiya Sanstha Ltd (WNLB) dropped 3.09%, making it the biggest laggard of the day.
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Radhi Bidyut Company Ltd (RADHI) topped the turnover leaderboard, followed by Ngadi Group Power Ltd (NGPL) and Universal Power Company Ltd (UPCL).
The total market capitalization rose to over Rs 4.45 trillion, up from Rs 4.37 trillion on Monday, reflecting a significant boost in investor confidence.
