Nepse falls 35 points, wiping Rs70 billion off market value

The Nepal Stock Exchange (Nepse) index experienced a significant correction last week, falling by 35.45 points or 1.32 percent. This downturn was driven by widespread selling pressure across various market sectors, pushing the benchmark index down from 2,685.54 points to close at 2,650.09 points by Friday.

Market sentiment remained cautious throughout the trading week. The Sensitive Index, tracking Class A companies, saw a decline of 6.57 points (1.40 percent). Similarly, the Float Index and Sensitive Float Index also recorded decreases of 2.80 points (1.52 percent) and 2.58 points (1.62 percent) respectively. Consequently, the total market capitalization of Nepse diminished by Rs70 billion, settling at Rs4.55 trillion from Rs4.62 trillion a week prior, marking a 1.52 percent overall reduction.

Trading activity saw a slight dip, with total turnover falling by Rs220 million to Rs21.45 billion. The average daily turnover also decreased marginally. Most of the market's sub-indices ended the week in negative territory, with Manufacturing and Processing, Others, and Banking sectors experiencing the most substantial declines. Hydropower and Trading were the only sectors that managed to post gains.

Despite the recent downturn, market analyst Manish Aryal expressed some optimism. He suggested that improving financial statements from listed companies, particularly banks, financial institutions, and hydropower companies, could provide support to the market. Many of these companies have reported gradual improvements in their fourth-quarter financial results.

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Most companies in the BFIs have reported gradual improvement in their fourth-quarter