Kathmandu: On Wednesday, Nepal Stock Exchange (NEPSE) witnessed a remarkable surge, achieving a daily turnover of Rs 12.05 billion, marking its highest figure in the past 35 months.
The bullish trend follows recent political developments where Nepali Congress and CPN-UML formed a coalition to replace the former government. This alliance has bolstered investor confidence, particularly with the appointment of Bishnu Prasad Paudel as the new finance minister.
After enduring a bearish phase exacerbated by high interest rates and economic slowdown over the past two years, the stock market has now embarked on a positive trajectory. NEPSE, which reached a peak of 3,198.6 points on August 18, 2021, had plummeted to 1,826.24 points by November 5, 2023. However, recent weeks have seen a resurgence, with the market gaining over 300 points in the last fortnight alone.
In Wednesday’s trading session, NEPSE recorded a gain of 54.04 points, opening at 2,310.59 points and experiencing fluctuations before closing strong. The sensitive index, which measures the performance of ‘A’ class companies, rose by an impressive 10.25 points.
All 13 trading groups saw gains, with non-life insurance leading the charge with a substantial increase of 382.41 points. Other sectors such as hotels, life insurance, trading, manufacturing, development banks, and finance also contributed significantly to the market’s upward momentum.
Among individual stocks, 204 companies witnessed gains while 32 reported losses. Singati Hydro Energy Limited recorded the highest turnover at Rs 235.58 million. Central Finance Co Ltd emerged as the top gainer, while Citizens Mutual Fund 2 experienced the largest decline of 9.90 percent in its market value.
Investor optimism remains high as NEPSE continues its resurgence, reflecting renewed confidence in Nepal’s economic outlook and policy environment.