Nepal's stock market edges higher on banking gains despite weak trading

The Nepal Stock Exchange (Nepse) concluded the week with a modest gain, as banking stocks provided support to the benchmark index. The Nepse index rose 3.89 points, or 0.15 percent, to close at 2,653.40 points. Market capitalization saw an increase of around Rs 20 billion, adding to investors' wealth over the five trading days. However, trading activity declined, with weekly turnover falling 8.45 percent to Rs 18.32 billion, reflecting a cautious investment climate.

Banking stocks were the top performers, with the subindex gaining 1.35 percent. Conversely, the Manufacturing and Processing subindex experienced the sharpest decline, falling 1.35 percent. Among individual stocks, Snow Rivers Limited saw a significant surge of over 101 percent, while Asian Hydropower was the biggest loser, down 6.74 percent. Laxmi Sunrise Bank led in turnover and trading volume, with its stock rising 2.17 percent.

Market analyst Jagannath Dhungel noted a lack of positive short-term outlook, attributing it to ongoing investigations into stock market incidents and investors needing to arrange funds for mid-July loan interest payments. He suggested that large investors might be reducing their exposure. Despite these short-term concerns, Dhungel expressed optimism for the medium-term, anticipating market stabilization and growth as government economic priorities become clearer and policies yield results.

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The market may stabilise and move higher as the government's economic priorities become clearer and its policies begin to produce results.