NEPSE Falls 0.77% as Bears Tighten Grip

The Nepal Stock Exchange (NEPSE) index extended its losing streak on Tuesday, February 17, closing sharply lower for the second straight session. The benchmark index fell 0.77 percent, or 20.75 points, to settle at 2,642.15, following a 0.30 percent decline on Monday. Trading had remained closed on Sunday due to the Maha Shivaratri public holiday.

Daily turnover rose to Rs 8.36 billion from Rs 7.94 billion in the previous session. A total of 20.56 million shares were traded through 83,075 transactions.

All major sub-indices ended in negative territory. The Sensitive Index slipped 0.65 percent, the Float Index declined 0.86 percent, and the Sensitive Float Index fell 0.69 percent. Market breadth remained weak, with share prices of 214 companies declining, 42 advancing, and six remaining unchanged.

Salapa Bikas Bank Limited emerged as the top gainer, hitting the upper circuit limit for the second consecutive day.

Reliance Spinning Mills Limited (RSML) rose 9.64 percent to close at Rs 361.80 on its second day of trading. Investors who bought the stock on its debut day incurred losses of up to Rs 520.80 per share, compared to the IPO prices. Qualified institutional investors had subscribed at Rs 912 per share, while general investors purchased shares at Rs 820.80, a price approved by the Securities Board of Nepal at a 10 percent discount to the institutional bid.

Although RSML’s IPO was heavily oversubscribed, the stock entered the secondary market at a substantially lower valuation. Its 19 million shares were listed in the secondary market on February 13. NEPSE fixed the opening price band at Rs 100 to Rs 300 per share under its revised pricing mechanism, which determines initial prices based on face value rather than net worth. The company has expressed dissatisfaction.

On the downside, Super Mai Hydropower Limited was the biggest loser of the day, hitting the lower circuit limit.

Hydropower stocks continued to dominate turnover. Ridi Power Company Limited led with shares worth Rs 533.61 million traded, followed by Ankhu Khola Jalvidhyut Company Ltd and Ngadi Group Power Ltd.

Of the 13 sectoral indices, only two closed higher. The Mutual Fund Index gained 0.48 percent, while the Trading Index rose 0.22 percent. The Finance Index recorded the steepest decline, falling 2.11 percent.

Market capitalisation fell to Rs 4,444.55 billion, down from Rs 4,479.47 billion in the previous session.