NEPSE Falls 1.06%

After a 1.59% decline on Wednesday, the Nepal Stock Exchange (NEPSE) index dropped another 1.06%, or 31.50 points, on Thursday, July 31, closing at 2,922.63.

The index had surged 1.03% on Tuesday to close at 3,002.07 points, marking its highest level in four years.

Over the past 15 trading days, NEPSE has closed higher in 11 sessions, rising from 2,731.8 to 2,922.63 points.

NEPSE’s all-time high remains 3,198.60, recorded on August 18, 2021, with an intraday peak of 3,220.33.

Trading turnover on the week’s last trading day stood at Rs 15.98 billion, with over 36.87 million shares changing hands in 168,594 transactions.

Total market capitalization decreased to Rs 4,876.91 billion from Rs 4,929.48 billion the previous day.

Sectoral indices were broadly down, with the Sensitive Index declining 1.32%, Float Index falling 1.02%, and Sensitive Float Index slipping 1.36%. 

Of the 250 companies traded, only 52 advanced while 198 declined.

Top gainers included Trade Tower Limited (TTL) and Nepal Finance Ltd. (NFS), each surging 9.99% to close at Rs 1,043.70 and Rs 788.19 per share, respectively. 

Conversely, Bhugol Energy Development Company Limited (BEDC) was the biggest loser, falling 7.10% to Rs 793.30 per share.

Himalayan Reinsurance Limited (HRL) led turnover with Rs 1.33 billion in trades, followed by Nepal Reinsurance Company Limited (NRIC) and Himalayan Distillery Limited (HDL) with Rs 753.51 million and Rs 690.95 million, respectively.

Among sectoral indices, only the Finance Index ended in positive territory with a 1.18% gain. The Trading Index declined the most, dropping 2.44%, while the Others Index posted a minimal loss of 0.30%.

Market analysts noted the recent downturn as a natural correction after a sharp rally earlier in the month, fueled by Nepal Rastra Bank’s monetary policy easing, including increased lending limits for margin loans and relaxed capital adequacy requirements. 

“The market needed a breather after sustained gains,” said a local broker. “This correction may help stabilize prices and set the stage for more sustainable growth.”