The Nepal Stock Exchange (NEPSE) Index closed 0.19% lower on Monday, May 26, shedding 5.21 points to settle at 2,674.76, despite the policy boost to revive investors’ confidence the previous day.
Investor sentiment remained muted even after the Nepal Rastra Bank (NRB) reduced the risk weight on share mortgage loans from 125% to 100%—a move announced in the third quarterly review of the monetary policy for fiscal year 2024/25. The reduction, long demanded by investors, is intended to ease pressure on banks’ capital adequacy and encourage greater margin lending.
Read: Monetary Shift: Governor Poudel Eases Stock-Loan Rules in First Policy Review
Although liquidity remains ample in the banking sector, lending growth has been constrained. The central bank expects the revised risk weight to support increased credit flow in the coming days.
Still, the market failed to gain traction. The NEPSE index fluctuated during intraday trading, dropping as low as 2,670.35 and rising to a high of 2,745.89 before closing in the red.
A total of 92 companies saw gains. Om Megashree Pharmaceuticals Limited (OMPL) led the charge, surging 9.99%, or Rs 112.60, to close at Rs 1,239.30 per share.
On the losing side, shares of 155 companies declined. Gurans Laghubitta Bittiya Sanstha Limited (GLBSL) recorded the steepest fall of the day, dropping 10%.
Trading volume declined slightly compared to Sunday. More than 17.16 million shares were traded on Monday, with total turnover amounting to approximately Rs 7.59 billion—down from over 18.5 million shares and around Rs 7.6 billion the previous day.
Radhi Bidyut Company Ltd (RADHI) posted the highest turnover for the day, with shares worth over Rs 643.15 million changing hands. Its share price rose by Rs 12.24 to close at Rs 804.
The market capitalization fell by Rs 8.68 billion, slipping from around Rs 4.46 trillion on Sunday to Rs 4.45 trillion by market close.
Among sectoral indices, the Manufacturing & Processing Index gained 0.79% and the Banking Index edged up 0.17%. All other sectors ended in negative territory, with the Microfinance Index—which had outperformed others in the previous session—registering the largest loss at 1.50%.
