NEPSE Slips Again as Turnover Drops Sharply

The Nepal Stock Exchange (NEPSE) index fell 0.16 percent, or 4.28 points, on Monday, December 1, to close at 2,645.24. The drop followed a 0.99 percent decline the previous day.

NEPSE had closed higher in all five trading days last week, gaining 1.55 percent on Sunday, 1.94 percent on Monday, 0.20 percent on Tuesday, 0.36 percent on Wednesday, and 0.39 percent on Thursday.

Turnover decreased sharply on this week’s second trading day. It remained at Rs 4.71 billion, down from Rs 7.08 billion the previous day. A total of 10,860,828 shares changed hands in 60,620 transactions compared to over 15.7 million traded in 84,156 transactions on Sunday.

All major sub-indices declined. The Sensitive Index dropped 0.37 percent. The Float Index fell 0.26 percent. The Sensitive Float Index slipped 0.49 percent.

Market breadth was mixed. Of the traded securities, 126 declined, 124 advanced while eight remained unchanged.

Sagar Distillery Limited (SAGAR) and Swastik Laghubitta Bittiya Sanstha Limited (SWASTIK) hit the upper circuit limit. Jhapa Energy Limited (JHAPA) and Shreenagar Agritech Industries Limited (SAIL) also gained 9.99 percent each.

But, Nifra Green Energy Debenture 6% – 2088/89 (NIFRAGED) became the biggest loser, dropping 9.51 percent.

United Modi Hydropower Ltd. (UMHL) led the turnover chart with Rs 271.003 million. Himalayan Reinsurance Limited (HRL) and Bandipur Cablecar and Tourism Limited (BANDIPUR) followed.

Five of the 13 sectoral indices closed higher. The Finance Index rose the most, gaining 0.91 percent. The Investment Index posted the sharpest decline, falling 0.73 percent.

Notably, the Microfinance Index climbed 0.61 percent. Earlier in the day, the Nepal Rastra Bank, in its first-quarter review of the monetary policy, raised the maximum limit for collateral-based microfinance loans from Rs 700,000 to Rs 1.5 million. The review also allows microfinance institutions to revise repayment schedules for borrowers facing difficulties.

The review further mentioned raising the ceiling for personal overdraft loans from Rs 5 million to Rs 10 million. These measures are expected to encourage credit expansion at a time when the banking system holds large volumes of excess liquidity.

Total market capitalisation declined to Rs 4,441.41 billion from Rs 4,448.60 billion on Sunday.