NEPSE falls 43.89 points as flood-hit sectors remain under pressure

Nepal’s stock market remained under pressure on Monday, with the NEPSE index losing 43.89 points to close at 2,513. The decline continued throughout the trading session, and only 21 companies recorded gains, compared with 253 decliners and four unchanged stocks.

Turnover also edged lower. Shares worth Rs 3.64 billion changed hands, compared with Rs 3.78 billion on the previous trading day.

The sharpest losses came in sectors directly exposed to the recent floods. Non-life insurance stocks fell 5.03%, as insurers face expected claims for damaged vehicles, homes and hydropower projects. The Others group, which includes Nepal Reinsurance Company and Himalayan Reinsurance Company, dropped 3.30%.

Hydropower stocks declined 2.94%, with more than a dozen projects reportedly severely affected by the floods. Mailung Khola Hydropower fell 14.98%, Rasuwagadhi Hydropower dropped 11.76%, Chilime Hydropower lost 10.49% and Mandu Hydropower declined 9.30%.

Other sectors also fell, including banking, development banks, finance, hotels and tourism, investment, life insurance, microfinance and trading. Manufacturing and processing was the only major sector to rise, gaining 0.70%. Cement companies moved higher on expectations that reconstruction would lift demand.