The Nepal Stock Exchange (NEPSE) continued its downward trend, slumping for the seventh consecutive session on Tuesday, March 11. The index fell by 1.17% or 32.21 points, to close at 2,719.20.
The index has shed 171.06 points over the past seven sessions, reversing its previous gains after a nine-day rally that added 211.78 points.
Analysts reiterated that continuous market decline has prompted increased selling pressure, particularly among retail investors. Many traders are waiting for a potential bottom before re-entering the market, they said.
Some investors argue that ongoing political events may have also contributed to the decline. In recent weeks, supporters of monarchy have been carrying out rallies across various parts of the country, denouncing the current political system, particularly after former King Gyanendra Shah's message on the eve of Prithvi Jayanti in January.
On Sunday, the former king was welcomed and escorted to his residence in Nirmal Niwas by thousands of cadres of pro-monarchist parties, along with other supporters upon his arrival in Kathmandu from Pokhara.
Trading volume, too, slightly declined on the week's third trading day, with turnover surpassing Rs 8.31 billion, down from over Rs 8.37 billion in the previous session. More than 15.5 million shares changed hands across 92,031 transactions.
All three major indices ended in negative territory: the Sensitive Index dropped 0.71%, the Float Index declined 1.04%, and the Sensitive Float Index fell 0.69%.
Mahalaxmi Bikas Bank Ltd. (MLBL) led in gains, surging 9.98%, while NESDO Sambridha Laghubitta Bittiya Sanstha Limited (NESDO) suffered the steepest loss, sliding 6.69%.
Himalayan Reinsurance Limited (HRL) recorded the highest turnover, followed by Nepal Reinsurance Company Limited (NRIC) and Mahalaxmi Bikas Bank Ltd. (MLBL).
Of the 13 sectoral indices, only the Development Bank Index managed to close in positive territory, rising 1.93%, while the Manufacturing and Processing Index suffered the sharpest decline of 2.49%.
