The Nepal Stock Exchange (NEPSE) Index rose slightly by 3.58 points on Sunday, closing at 2,661.60 points. This marks a 0.13 percent increase by the end of the day’s trading session. The Sensitive Index, which tracks the performance of class ‘A’ stocks, went up by 0.40 percent. The Float Index, which reflects the movement of actively traded shares, also rose, but only by 0.04 percent.
Sector-Wise Performance Shows Mixed Results
Out of 13 sectors on the NEPSE, six closed in positive territory, while seven saw declines. The Investment sector led the gainers with a rise of 1.77 percent. It was followed by the Trading sector, which went up by 1.18 percent. The Hydropower sector also performed well, rising by 1.06 percent.
On the other hand, the Finance sector recorded the biggest loss of the day. It dropped by 1.05 percent. Other sectors also declined but by less than 1 percent. This mixed performance shows that investor sentiment remains cautious.
High Trading Volume Reflects Strong Market Activity
Despite the small overall gain, market activity remained strong. A total of 28,438,428 shares of 314 companies were traded. These trades took place through 89,161 transactions, leading to a total daily turnover of about Rs 10.87 billion.
Among the traded stocks, 104 companies saw their prices rise, while 141 experienced declines. This suggests that while some investors were optimistic, many were still cautious.
Market Capitalization Continues to Grow
At the end of Sunday’s trading, NEPSE’s total market capitalization stood at around Rs 4.425 trillion. This slight growth in market value reflects ongoing interest from investors in the Nepali stock market.
According to Nepal Monitor, experts suggest that current liquidity in the banking sector and lower interest rates have contributed to the stock market’s steady performance. They also note that small gains like this help build confidence among investors over time.
Other Notable Developments in the Nepali Stock Market
The steady turnover of nearly Rs 11 billion shows that despite global uncertainties and internal economic challenges, the Nepali stock market remains active. Analysts believe that sectors like hydropower and investment are likely to continue attracting attention, especially with new infrastructure projects being announced.
In recent weeks, NEPSE has shown resilience despite regional market volatility. For instance, political stability and upcoming investment summits have added to market optimism. However, experts also warn that external factors like global oil prices and local inflation rates could impact investor behavior in the coming weeks.
Key Factors Behind the Day’s Market Movement
Several reasons contributed to Sunday’s market behavior:
- Liquidity in Banks: Increased availability of funds has made it easier for investors to enter the market.
- Lower Interest Rates: With interest rates falling, stocks have become more attractive compared to savings.
- Sectoral Performances: Sectors like hydropower and trading showed solid gains, lifting the overall market mood.
- Investor Sentiment: Cautious optimism dominated as investors balanced hopes of gains with concerns over economic pressures.
What to Watch in the Coming Days
Market experts advise keeping an eye on several factors that could affect NEPSE in the near future:
- Economic Data Releases: Upcoming reports on GDP growth and inflation could influence market sentiment.
- Monetary Policies: Any changes in central bank policies could shift investor preferences.
- Global Trends: International market movements, particularly in South Asia, could impact NEPSE.
Analysts recommend that investors diversify their portfolios and stay informed about both local and global developments.
The Nepal Stock Exchange closed slightly higher on Sunday, supported by strong turnover and sectoral gains in investment, trading, and hydropower. While the finance sector weighed down the overall performance, steady activity shows growing investor interest. As the market continues to respond to local and global factors, cautious optimism appears to be the prevailing mood.
