Nepal Stock Exchange shows volatility and recent recovery

The Nepal Stock Exchange (NEPSE) experienced significant volatility recently. During one week of trading, the market index decreased by 14 points, or 0.57 percent, resulting in a loss of Rs 25 billion in investor book value. Market capitalization fell to Rs 4.373 trillion during this period. Sector performance was mixed; while the manufacturing and processing group saw gains, the non-life insurance sector experienced a sharp decline of 4.55 percent.

Following this downturn, the market showed signs of recovery. On the first trading day of the subsequent week, the NEPSE index rose by 18.07 points to close at 2,560. This marked the fourth consecutive day of gains for the market. The non-life insurance sector, which had previously struggled, recorded a 2.05 percent increase as investor interest returned. Other sectors, including banking, hydropower, and manufacturing, also reported positive movement.