After recording consecutive gains in the past three trading sessions, the Nepal Stock Exchange (NEPSE) declined on Tuesday, April 1. 

The index fell 0.62% to close at 2,676.17 points. It had climbed for the third consecutive trading day, on Sunday, by 1.11%. The market remained closed on Monday due to the public holiday for Eid ul-Fitr.

The third trading day of the week saw share prices of 201 companies decline, while 42 companies saw gains.

Notably, Guardian Micro Life Insurance Limited (GMLI) hit the upper circuit limit, following the announcement of a 100% rights share issuance, which boosted investor interest. The company’s share price rose by Rs 234.50 per unit, closing at Rs 2,576.80.  

Conversely, Gurans Laghubitta Bittiya Sanstha Limited (GLBSL) experienced the steepest decline, with its share price dropping by 5.96% (Rs 186.25 per unit), settling at Rs 2,940.90.  

The market downturn was largely attributed to short-term investors booking quick profits, affecting overall sentiment. The trading session formed a red candlestick with a long lower shadow and a short upper shadow, indicating a lack of investor enthusiasm for the next trading day.  

The total trading volume also declined. On Sunday, over  15.5 million shares worth over Rs 7.56 billion were traded. However, on Tuesday, the turnover dropped to Rs 5.79 billion as only 10.6 million shares changed hands.

Despite the overall decline, the Himalayan Reinsurance Limited (HRL) recorded the highest transaction value, with its shares worth Rs 642.56 million were traded, according to NEPSE data.  

While the Trading Index saw a 3.80% gain, all other sectors recorded declines, with the Finance Index witnessing a steepest fall of 1.84%. 

The decline in stock prices led to a sharp drop in market capitalization, which reduced by Rs 28.14 billion. NEPSE’s total market capitalization, which stood at Rs 4.47 trillion on Sunday, decreased to Rs 4.44 trillion on Tuesday.