NEPSE Drops by 7.33 Points as Finance Sector Declines

January 16, 2025
NEPSE Drops by 7.33 Points as Finance Sector Declines

The Nepal Stock Exchange (NEPSE) index dropped by 7.33 points on Thursday. The market, which closed at 2585.86 points on Wednesday, declined to 2588.62 points on Thursday.

Similar to Wednesday, the finance sub-index saw a significant decline on Thursday. Additionally, sectors such as banking, development banks, hotels and tourism, investment, microfinance, life and non-life insurance also turned red, leading to a drop in the stock market.

On the last trading day of the week, only the hydropower, manufacturing, mutual funds, and trading sub-indices marginally increased.

Former president of the Stock Brokers Association, Santosh Mainali, mentioned that investors in finance companies might be feeling higher risk and selling shares.

“The finance sub-index had surged significantly. However, after Karnali Development Bank faced issues and reports emerged of investigations into weaker finance companies, investors may have become alarmed,” he said.

Among finance companies, shares of Pokhara and Janaki Finance were traded at negative circuit levels. Reliance Finance’s shares also declined by about 8%. Besides that, Khani Khola Hydropower’s shares fell by 9%.

Despite the overall market decline, four companies’ shares hit positive circuit levels. Bottlers Nepal, Win Nepal Microfinance, Mandakini Hydropower, and Upper Hewakhola Hydropower shares increased by 10%.

In terms of transaction volume, Sindhu Development Bank’s shares were traded the most, followed by NRN and Sanima Middle Tamor.

Compared to Wednesday, the total transaction amount slightly increased to NPR 5.93 billion on Thursday.

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