Market Retreat Trims Nearly a Quarter of Prior Advance

Nepal’s stock market retreated on Tuesday, January 27, as selling pressure intensified across most sectors.

The benchmark Nepal Stock Exchange (NEPSE) index fell 1.53 percent, or 42.58 points, to close at 2,726.51 on the third trading day of the week.

The decline followed a 0.11 percent correction on Monday, after gains of 2.12 percent on Sunday and 0.34 percent last Thursday.

Market breadth was sharply negative. Shares of 224 companies declined, while 34 advanced and two remained unchanged.

All major sub-indices closed lower. The Sensitive Index fell 1.56 percent, the Float Index dropped 1.62 percent, and the Sensitive Float Index declined 1.63 percent.

Over the past two trading sessions, NEPSE has lost 45.65 points. The pullback has erased 23.91 percent of the gains recorded between December 23 and January 25.

The index rose 0.12 percent, or 3.27 points, to close at 2,584.49 on December 23, snapping a three-day losing streak. It later climbed to a recent high of 2,772.17 on January 25. Over those 18 sessions, the market advanced 190.96 points, closing higher on 12 days.

A large red candlestick with upper and lower shadows signalled the possibility of further decline in the near term, analysts said.

Trading activity slowed. More than 30 million shares changed hands through 142,476 transactions, generating a turnover of Rs 14.16 billion, compared to over 36 million shares traded on Monday to generate Rs 16.35 billion turnover.

Saptakoshi Development Bank Ltd was the session’s top gainer, rising 8.56 percent. The stock had hit the upper circuit in the previous session.

Om Megashree Pharmaceuticals Limited led the losers, sliding 6.93 percent.

By turnover, Radhi Bidyut Company Ltd topped the list with transactions worth Rs 578.51 million, followed by SY Panel Nepal Limited and Ankhu Khola Jalvidhyut Company Ltd.

Sectoral performance was broadly weak. Twelve of the 13 sector indices closed in the red, while the Mutual Fund index was unchanged. The Finance Index posted the steepest loss, down 2.42 percent. The Others Index fell 1.97 percent. The Trading Index declined 0.51 percent.

Total market capitalisation fell to Rs 4,577.87 billion from Rs 4,649.38 billion the previous day.