The Nepal Stock Exchange (NEPSE) index jumped 4.17% this week, closing at 2,703.96 points, up from 2,595.74 points last Thursday.

The market ended in the green all five trading days. Increased trading activity pushed weekly turnover up by nearly 14% to Rs 39.93 billion. A total of 101.7 million shares were traded, up 17.8% from 86.4 million last week.

Despite ample liquidity in the financial system, the market had long struggled to maintain sustained gains. However, brokers say investors are now borrowing more to buy stocks, signalling renewed confidence.

The rise in activity reflects optimism ahead of the new fiscal year starting July 17. Many investors are anticipating dividends from companies that have not made payouts for a long time.

Market capitalisation rose to Rs 4,505.19 billion, up from Rs 4,324.49 billion a week ago.

The Sensitive Index, which tracks large-cap stocks, rose 4.63%.

All sector indices posted gains. The Life Insurance sub-index led the rally with an 8.50% rise, followed by Finance (7.38%), Development Banks (7.26%), Non-Life Insurance (7.02%), and Banking (5.25%). The Trading sector recorded the smallest gain at 0.83%.