Nepal Stock Exchange Ends Week Higher Ahead of Budget Announcement

The Nepal Stock Exchange (NEPSE) index concluded the trading week of May 18 to 22 on a high note, gaining 26.55 points to close at 2,758.49. This upward trend occurred amidst anticipation for the upcoming national budget announcement, fostering a generally positive investor sentiment.

Investor wealth saw a significant boost, expanding by roughly Rs 45 billion over the five trading days. This growth pushed the market capitalisation to Rs 4.704 trillion. The hydropower sector was the week's top performer, surging 2.16 percent, closely followed by finance and development banks. These gains helped offset a minor dip in the trading sector.

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Buyers pushed the market in the last hour, which increased volume.

Despite the overall market rise, weekly liquidity saw a slight decrease, indicating a degree of caution among investors. However, the final trading day experienced a surge in turnover, reaching Rs 4.49 billion, significantly higher than the previous day. This late-week momentum, attributed to buying pressure in the last hour, suggests potential for continued positive movement into the following week.

Market analyst Jagannath Dhungel noted that the strong buying activity on the last day of trading was instrumental in boosting both volume and the index. He expressed optimism that this momentum could carry forward, potentially leading to a positive start for the next trading week if sentiment remains favorable.

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This momentum could carry into the next trading week, with initial movement likely positive on Monday if sentiment holds.