Nepse struggles to gain momentum as investors lose Rs7 billion in wealth

The Nepal Stock Exchange (Nepse) experienced a downturn over the trading week from August 10 to 14, with the index closing at 2,643.83 points, a decrease of 6.26 points or 0.24 percent. This decline reflects ongoing investor caution and diminished market confidence. The overall market capitalization also saw a reduction of around Rs7 billion, falling from Rs4.554 trillion to Rs4.547 trillion.

Trading activity mirrored the cautious sentiment, with total turnover dropping by 14.22 percent to Rs18.40 billion from Rs21.45 billion in the preceding week. The average daily turnover across the five trading sessions was Rs3.68 billion. Sectoral performance was mixed, but predominantly negative, with nine of the thirteen sub-indices ending the week lower. The Trading sub-index suffered the most significant drop, falling 4.37 percent. Conversely, the Hotel and Tourism sub-index was the top performer, gaining 0.68 percent.

Market analyst Jagannath Dhungel observed a lack of indicators for a sustained recovery, noting that traders are increasingly prioritizing short-term gains and seeking opportunities to exit positions. He attributed the weak market sentiment to several factors, including the economic slowdown post-Covid-19 pandemic, uncertainty surrounding the new government, and ongoing investigations into market-related activities. Dhungel also highlighted the imbalance of growing supply without corresponding demand-increasing measures as a concern, stating that "Investors are looking for a way out because confidence in the market has declined."

“

Investors are looking for a way out because confidence in the market has declined.