Stock Market Plummets by 105 Points; Seven Companies’ Shares Drop by 10%

On Sunday, the NEPSE index of the stock market fell sharply by 105.50 points (3.79 percent), closing at 2,676 points. Narendra Sinjapati, former president of the Stock Broker Association, stated that the stringent measures taken against businesses following the formation of the new government have heightened fear and uncertainty in the market. On Sunday, the trading volume reached NPR 1.238 billion, with share prices of seven companies rising and those of 261 companies declining. Kathmandu, 22 Chaitra.

A significant decline was observed in the stock market on Sunday. The main index, NEPSE, dropped by 105.50 points (3.79 percent) compared to the previous day, settling at 2,676 points. On the previous Thursday, NEPSE had increased by 5.82 points. Since the new government was formed, the NEPSE has fallen by a total of 284 points. Prior to the formation of the government, the NEPSE index stood at 2,960 points.

Narendra Sinjapati explained that the tightening of regulations against businesspersons following the new government’s formation has created widespread fear and panic among investors. He said, “The major shares in the market are held by large business entities, and when enforcement actions began against them, it caused significant anxiety in the market. However, the situation is not as dire as it seems.” Despite the large drop in the index, the trading volume increased from NPR 881 million the previous day to NPR 1.238 billion on Sunday.

While seven companies saw their share prices rise, 261 companies experienced declines. The largest gain was recorded in the ‘Others’ sector, which rose by 6.09 percent. This sector includes reinsurance companies such as Nepal Reinsurance and Himalayan Reinsurance, whose prices surged significantly. Other sectors showed declines: Banking fell by 3.32 percent, Development Banks by 4.32 percent, Finance by 3.94 percent, Hotel & Tourism by 3.04 percent, Hydropower by 4.84 percent, Investment by 3.32 percent, Life Insurance by 3.59 percent, Manufacturing & Processing by 1.33 percent, Microfinance by 3.43 percent, Non-life Insurance by 3.86 percent, and Trading by 3.58 percent.

Six newly listed companies saw their prices increase by 10 percent. These include Reliance Spinning Mills, Suprakudi Hydropower, Rizline Energy, Suryakund Hydroelectric, Bhujung Hydropower, and Hotel Forest Inn. Conversely, seven companies experienced a 10 percent decline in share price: Narayani Development Bank, Himalayan Reinsurance, Bhugol Energy, Guardian Microlife Insurance, Sapta Koshi Development Bank, Pure Energy, and Sanvi Energy. Nepal Reinsurance’s share price also declined sharply by 9.62 percent. Among the most actively traded companies today were Himalayan Reinsurance, Shivam Cement, Gadi Group, National Hydropower, and NRN Infrastructure.