Rasuwa floods drag down Nepal's stock market; hydropower, insurers slide

Nepal's stock market experienced a significant downturn on Wednesday, with the Nepal Stock Exchange (NEPSE) index dropping 35.92 points to close at 2,558.35. The decline was largely driven by a major flood that hit the Rasuwa region earlier in the day. Hydropower and non-life insurance sectors were particularly hard-hit. The hydropower index fell by 2.84 percent, while the non-life insurance index saw the steepest decline, dropping 3.90 percent. Analysts attributed the sharp fall in hydropower shares to preliminary reports of extensive damage to several projects in the affected area. Non-life insurers faced heavy selling as concerns grew over potential payouts for damaged hydropower projects, which could impact their profits. Across the broader market, 252 out of 278 traded companies saw their share prices fall. Despite the market's negative performance, the total turnover reached Rs4.77 billion through 135,823,320 shares changing hands in 61,442 transactions, an increase from the previous day.