NEPSE Falls 0.95%, Erasing Around Rs 43 Billion in Market Value in One Week Despite Higher Trading Turnover

The fall came even as trading activity increased. Weekly turnover rose 15.33% to Rs 21.22 billion from Rs 18.40 billion in the previous week. Average daily turnover also increased to about Rs 4.24 billion from Rs 3.68 billion. This shows that investors remained active in the market even though overall share prices moved lower.

NEPSE Market Performance This Week

The NEPSE index recorded a steady decline during the week, ending at 2,618.72 points. The Sensitive Index, which tracks major companies, also fell 3.37 points, or 0.73%, to 461.36 points. The Float Index declined 2 points, or 1.10%, to 179.76 points.

The fall in market capitalization is important to understand. The reported Rs 43 billion loss refers to a decrease in the overall market value of listed shares. It does not mean that investors collectively withdrew or paid Rs 43 billion in cash. Instead, the market value of their holdings declined as share prices fell.

Trading Turnover Rises Despite Market Decline

One of the notable features of the week was the rise in trading activity. Total turnover reached Rs 21.22 billion, an increase of Rs 2.82 billion from the previous week. The 15.33% increase suggests that investors continued buying and selling shares despite the weak direction of the overall market.

Heavy trading was seen particularly in hydropower and manufacturing stocks. Reliance Spinning Mills recorded the highest turnover among individual companies at Rs 2.27 billion, while Solu Hydropower was the most actively traded stock by volume, with more than 2.04 million shares changing hands.

Finance and Microfinance Sectors Face Pressure

Most sectoral indices ended the week in negative territory. The Finance sector suffered the biggest decline, dropping 2.37%. The Microfinance sector fell 1.89%, while the Investment sector declined 1.84%. The Banking sector also recorded a 0.79% fall, closing at 1,447.48 points.

However, not every sector declined. The Manufacturing and Processing sector gained 0.11%, while the Trading sector increased 0.41%. The mixed performance shows that investors were moving money between different stocks and sectors rather than leaving the market completely.

Some Stocks Record Sharp Gains

Despite the overall market decline, several individual companies recorded strong gains during the week. Sarvottam Paints was the biggest weekly gainer, with its share price rising 101.06% to Rs 797.60. Mount Everest Power Development also gained 69.66%, reaching Rs 774.

On the other hand, Khanikhola Hydropower Company recorded the biggest decline, with its share price falling 23.39% to Rs 269.90. The wide difference between the biggest gainers and losers highlights the volatility currently present in Nepal’s share market.

Why Is Nepal’s Stock Market Under Pressure?

Market analysts have pointed to weak demand and oversupply as important challenges facing NEPSE. Investor confidence has also remained under pressure, with some investors staying cautious instead of making large new investments.

Market analyst Tilak Koirala said weak demand and oversupply are among the key problems affecting the market. He also called for measures to increase demand and encourage greater participation by institutional investors.

Another market analyst, Manish Aryal, said he does not expect a major rise in the short term. According to him, recent trading in hydropower stocks provides some hope, but the market remains in a consolidation phase. He said significantly higher daily turnover would be needed to support a sustained upward movement.

What Could Happen Next?

Investors will be watching the coming trading sessions closely to see whether NEPSE can recover from the recent decline. The increase in turnover suggests that market participation remains active, but the fall in the index shows that buying pressure has not been strong enough to push the overall market higher.

For investors, the latest weekly figures underline the importance of careful research and risk management. A rise in trading volume does not automatically mean the market is becoming stronger, particularly when the overall index and market capitalization are falling.

The latest NEPSE performance shows a market caught between active trading and weak overall sentiment. While around Rs 43 billion in market value was erased during the week, turnover increased significantly, indicating that investors are still actively repositioning their portfolios. The direction of NEPSE in the coming weeks will depend heavily on investor confidence, demand for shares, liquidity and broader economic conditions.