The Nepal Stock Exchange (NEPSE) index ended in the red, again, on the first trading day of the week, despite a notable increase in turnover.
After a rebound of 78.31 points in the previous session, the index dropped 50.73 points, or 1.88 percent, to close at 2,637.79 points.
Stock Analysts argued that investors were not convinced by Thursday's improvements.
The market struggled to gain momentum due to a lack of participation from institutional and large investors, who are currently in a 'wait and see' mode, analysts said. Such investors are crucial for absorbing sales pressure.
“It will be challenging for the market to recover until large and institutional investors begin buying shares,” experts said.
Technical analysts emphasised that fluctuations are a normal part of the stock market.
“After a rise, it often corrects, and after a decline, it usually resumes growth,” an analyst told NBA. “Investors should be aware of these patterns.”
Sunday’s session witnessed the trade of 324 scrips in 119,739 transactions.
The market saw over 24 million shares traded, resulting in a turnover of Rs 10.34 billion, up from Rs 8.17 billion last Thursday.
The Sensitive Index and Float Index decreased by 1.64 percent and 1.85 percent, respectively, while the Sensitive Float Index decreased by 1.80 percent.
Out of the traded stocks, 25 saw an increase in their prices, 217 experienced a decline, while share prices of two companies remained unchanged.
Three companies —River Falls Power Limited (RFPL), Himalayan Hydropower Limited (HHL), Rawa Energy Development Limited (RAWA) — were the top gainers of the day, each hitting the upper circuit limit.
In contrast, Three Star Hydropower Limited (TSHL) became the biggest loser of the day, with its share prices plunging by 10 percent.
On the turnover front, CEDB Hydropower Development Company Limited (CHDC) led the pack followed by NRN Infrastructure and Development Limited (NRN).
In terms of sector wise performance, the Hotel and Tourism Index experienced the largest decrease of 3.68 percent, whereas the Mutual Fund Index saw the smallest decline of 0.61 percent.
