Nepal’s stock market is showing promising signs of recovery after the Dashain festival. On its first day back, the NEPSE index surged by 31.48 points, closing at 2,699.66. This positive movement reflects a rise across multiple sectors, indicating improved market sentiment as investors return after the festive break.
NEPSE Performance Overview
During the day, the market opened at 2,668.08, fluctuating throughout the session, hitting an intraday low of 2,667.82 and a high of 2,700.23. This rise signals a renewed confidence among investors, particularly as the holiday season ends and financial activities resume.
A total of 6,417,267 shares were traded through 35,648 transactions, with a cumulative turnover of Rs. 3.06 Arba. Market capitalization increased to Rs. 42.92 Kharba, while float market capitalization stood at Rs. 15.14 Kharba.
NEPSE’s Top Performers
The Finance sector led the charge with impressive gains of 4.61%, boosted by growing interest in financial institutions. Goodwill Finance Limited (GFCL) recorded the highest turnover, amounting to Rs. 18.05 crores, closing at Rs. 1,077.
Additionally, the two companies hit the positive circuit limit, reflecting a strong bullish sentiment. However, Mid Solu Hydropower Limited saw a sharp decline, closing with a maximum loss of 10%.
Sector-wise Gain-Loss Summary
With the exception of the Manufacturing and Processing index, which saw marginal losses, all other sectors ended the day in the green. This broad-based recovery highlights renewed investor interest, particularly in the Finance, Banking, and Hydropower sectors.
Investor Sentiment After Dashain
As one of Nepal’s biggest festivals, Dashain usually slows down trading activity, with many investors taking a break. However, post-festival, the market has regained momentum, and investors are optimistic about the upcoming quarterly reports from listed companies.
Many investors are also hopeful about falling interest rates in the coming months. Lower borrowing costs are expected to boost corporate profitability, encouraging increased participation in NEPSE.
What’s Next for NEPSE?
As we approach the end of the first fiscal quarter, most listed companies are set to publish their financial reports. These reports are anticipated to show positive growth, which could push NEPSE to new highs.
Moreover, with interest rates likely to drop, liquidity in the market is expected to improve, potentially supporting NEPSE’s upward trend in the coming weeks.
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- How to Invest in NEPSE for Beginners
Further Reading:
By staying informed and diversifying investments, investors can ride the wave of market trends and seize the best opportunities. Stay tuned to EarningPerShare for more expert insights into Nepal’s stock market.
