Nepal’s stock market saw a strong positive trend this week. The NEPSE index increased by 5.08%, or 139 points, closing at 2,870 points. This is the highest level in the past four months since mid-Falgun.
Weekly Trading Overview
The market traded for five days this week. Out of them, the index rose on four days and fell only on Monday. The momentum started from mid-Asar and has continued strongly.
| Day | NEPSE Movement | Change (Points) |
|---|---|---|
| Sunday | Up | +29.00 |
| Monday | Down | -35.00 |
| Tuesday | Up | +34.46 |
| Wednesday | Up | +34.61 |
| Thursday | Up | +75.84 |
Turnover Hits 11-Month High
This week saw a sharp rise in daily turnover:
| Day | Turnover (Rs. in Arba) |
|---|---|
| Sunday | 11.41 |
| Monday | 8.17 |
| Tuesday | 9.41 |
| Wednesday | 14.03 |
| Thursday | 16.59 (Highest in nearly 11 months) |
The sharp rise on Thursday came after the announcement of a favorable Monetary Policy and further interest rate cuts by banks.
This Week’s Sector-wise Stock Market Movements
Top Price Gaining Companies This Week
Top Price Losing Companies This Week
Monetary Policy and Interest Rate Cuts Boost Sentiment
The market gained strong momentum after the release of a favorable monetary policy. Investors were also encouraged when banks reduced their interest rates at the beginning of Shrawan. This positive news helped the market rise sharply, especially on Thursday.
Banking and Financial Stocks Lead the Rally
Banking and financial sector shares saw the most interest this week. Microfinance stocks rose the highest, by 8.11%. Development banks, finance companies, and commercial banks also performed well.
This rise was supported by flexible provisions in the new monetary policy, such as:
- The plan is to revise the dividend cap for microfinance.
- Lifting deposit mobilization limits for finance companies.
- A more practical approach to base rate calculation for banks.
As a result, the banking index rose by 3.06%, reaching its highest level in 8 months. Development banks, finance, and microfinance indices also hit multi-month highs.
Top Traded Companies of the Week
In terms of transaction value, Butwal Power Company had the highest turnover — NPR 2.47 billion. Other actively traded companies included:
- Radhi Bidyut
- NRN Infrastructure
- NIC Asia Bank
- Nepal Reinsurance
- Sanima Mai Hydropower
- Sahas Urja
- Ngadi Group
- Sanima Bank
- CEDB Hydropower
NIC Asia Bank had the highest number of transactions, followed by Butwal Power, Sahas Urja, Ngadi Group, and others.
IPO, FPO, and Rights Share Updates
- Himalayan Bank is offering an FPO of 9.25 million shares at NPR 157 per share.
- Mabilung Energy has its IPO open for locals of Sankhuwasabha and Nepalis working abroad until Shrawan 4 (and locals until 19 if undersubscribed).
- Swastik Laghubitta and Bungad Khola Hydropower also have IPOs open for migrant workers and affected locals.
- Rights shares are open for Barun Hydropower (100%), People’s Power (50%), and Tehrathum Power (100%).
Global Market Overview
Global markets showed mixed results this week:
| Market | Weekly Change | Monthly Change |
| Dow Jones (US) | +0.01% | +5.48% |
| S&P 500 (US) | — | +5.29% |
| Shanghai (China) | +0.39% | +4.08% |
| Nikkei 225 (Japan) | +1.01% | +2.39% |
| FTSE 100 (UK) | -0.03% | +1.46% |
| BSE Sensex (India) | -0.80% | Stable (6.02% in 6 months) |
Conclusion
Nepal’s stock market showed strong recovery this week, mainly fueled by investor confidence, favorable policies, and reduced interest rates. Banking and financial sectors led the rally, and turnover touched new highs. With IPOs, FPOs, and rights shares open, the market outlook remains optimistic.
