The Nepal Stock Exchange (NEPSE) crossed the 2,800 mark on Thursday, the last trading day of the week. The benchmark index surged by 49.15 points compared to the previous day, closing at 2,815 points.
Trading volume also saw a significant rise, with transactions worth NPR 11.39 billion recorded, up from NPR 9.90 billion the previous day. Among the listed companies, 186 saw an increase in their share prices, 52 declined, and six remained unchanged.
Banking Sector Leads the Market Surge
The banking sector recorded the highest gain of 3.32%, primarily driven by the recent monetary policy review by Nepal Rastra Bank. The central bank reduced the loan loss provision requirement for good loans from 1.10% to 1%, boosting investor confidence in the sector. Analysts anticipate this will positively impact banks’ future financial statements, leading to a surge in banking stocks on Thursday.
All market sectors witnessed gains. Following banking, the production sector rose by 2.91%, trade by 1.20%, others by 1.01%, non-life insurance by 0.70%, microfinance by 0.91%, life insurance by 0.81%, investment by 1.25%, hydropower by 1.80%, hotels and tourism by 1.12%, finance by 0.28%, and development banks by 1.53%.
Four Companies Hit 10% Upper Circuit
Shares of four companies hit the 10% upper circuit on Thursday. These included Guardian Micro Life Insurance, Upper Hewakhola, Sindhu Development Bank, and Dordikhola Hydropower. Liberty Energy’s stock climbed by 9.96%, Gurans Laghubitta by 9.24%, and Bottlers Nepal Balaju by 8.99%.
Meanwhile, Bhugol Energy and Upakar Laghubitta saw declines of 7.17% and 6.25%, respectively. Himalayan Reinsurance recorded the highest transaction volume, with shares worth NPR 964.7 million changing hands. Other companies with high trading volumes included Nepal Reinsurance, NRN Infrastructure, Singati Hydropower, and Kumari Bank.
