Why ‘Gen Z Stocks’ Are Drawing Investor Interest?

Shares of companies listed on the stock market after last year’s Gen Z movement have continued to attract strong investor interest, with some recording price gains of more than 600 percent from their initial trading levels.

Investors have dubbed these newly listed companies “Gen Z stocks,” a nickname that has gained traction in recent months as their share prices surged in the secondary market.

According to Nepal Stock Exchange (Nepse) data, several companies listed after the movement in early September 2025 have seen sharp price appreciation since trading began. Swastik Laghubitta Bittiya Sanstha has recorded the highest rise, with its share price increasing by 651.34 percent from its first trading price.

Sagar Distillery’s share price has risen by 551 percent, while Jhapa Energy and SY Panel have posted gains of 392.5 percent and 531.36 percent, respectively.

Swastik Laghubitta was listed on Nepse on November 10, with its first trade taking place the following day at Rs 391.70 per share. As of February 8, the company’s share price stood at Rs 2,943. Similarly, Sagar Distillery’s share price climbed to Rs 2,080 from its first trading price of Rs 319.50.

Market activity had slowed earlier due to a staff protest at Nepse, which delayed share listings following initial public offerings. Since November, nine companies have been listed, all of which have seen substantial price increases.

Speculative trading concerns

Veteran investor Diwakar Khadka said the sharp rise in so-called Gen Z stocks appears abnormal and may be driven by speculative trading. He warned that coordinated buying by short-term investors could be artificially inflating prices.

“While some newly listed companies have sound financial and technical fundamentals, there is also a risk of cornering in certain stocks,” Khadka said, cautioning retail investors to exercise prudence.

He added that price increases in fundamentally strong companies may be justified due to limited supply and high demand, but artificially created demand in loss-making firms that are unlikely to pay dividends in the near future could expose investors to losses.

Khadka said sustained price rises in newly listed stocks, especially when established companies offer better fundamentals, could indicate suspicious trading patterns.

Read: Why are the Share Prices of Some Loss-Making Companies High?