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🇳🇵 Nepal /Economy & Trade

NEPSE falls as flood concerns weigh on insurance, hydropower

From Kathmandu Post · () English

Summarized by DistantNews. Read the original for the full story.

At a glance

Analysis Named sources Context piece
  • Nepal’s benchmark stock index fell 0.57 percent during a four-session week, while market capitalisation declined by about Rs30 billion.
  • Insurance and hydropower shares came under pressure as investors assessed potential losses from the Bhotekoshi disaster and possible monsoon damage.
  • Analysts said the market remained technically weak but could rebound if trading volume increases and the index holds support near 2,500.

Nepal’s stock market remained under pressure last week as investors weighed the financial impact of the Bhotekoshi disaster, particularly on insurance and hydropower companies.

The Nepal Stock Exchange benchmark fell 14.54 points, or 0.57 percent, to 2,542.77 during the four trading sessions from August 31 to September 3. The Sensitive Index declined 0.36 percent to 449.50. Market capitalisation dropped by about Rs30 billion to Rs4.37 trillion, while turnover fell 18.51 percent to Rs12.81 billion.

Ten of the 13 sectoral indices declined. Non-life insurance recorded the steepest fall as investors considered the potential cost of disaster-related claims. Life insurers also dropped. Hydropower stocks weakened amid concerns about possible monsoon damage and the prospect of additional shares entering the market as lock-in periods expire.

Technical indicators remained weak. NEPSE traded below its 20-day and 50-day moving averages, while the relative strength index stood near 32, close to oversold territory. The MACD remained negative. The 2,500 to 2,510 area formed key support, with resistance at 2,590 to 2,640.

Market analyst Manish Aryal said insurance and hydropower remained especially vulnerable after the disaster, although NEPSE had shown signs of stabilising around 2,500 over the previous three sessions. “If volume supports the market, it could move higher from this point,” he said, estimating that daily turnover would need to reach about Rs8 billion for a stronger move. Trading was concentrated in shares including Reliance Spinning Mills, Shivam Cements, Solu Hydropower, Rasuwagadhi Hydropower and Ridi Power.

If volume supports the market, it could move higher from this point.

· Manish AryalThe market analyst said stronger turnover could support a rebound.
About this summary

Originally published by Kathmandu Post. Summarized and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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