NEPSE Rallies 2.23% as Market Recovers from Political Turbulence

The Nepal Stock Exchange (NEPSE) index surged 2.23%, or 58.63 points, on Tuesday, September 23, closing at 2,682.25.

Following a sharp 6% plunge last Thursday, the benchmark index staged a strong recovery on Sunday, September 21, rising 4.44%. The market remained closed on Monday for Ghatasthapana, the first day of Dashain.

The recent volatility traces back to the Gen Z-led protests on September 8 and 9 that toppled the KP Oli government. Trading was suspended until September 17 amid concerns over market instability during the political unrest. When it reopened on September 18, the index plunged 160.33 points.

However, daily turnover Tuesday dropped to Rs 5.29 billion from Rs 9.17 billion Sunday. A total of 11,353,148 shares changed hands across 67,382 transactions.

All major indices closed in the green: the Sensitive Index, up 1.99%, the Float Index 2.17%, and the Sensitive Float Index 1.93%. 

Of the 252 listed companies traded, 238 advanced, 14 declined.

Saptakoshi Development Bank Ltd (SAPDBL) and Joshi Hydropower Development Company Ltd (JOSHI) hit the upper circuit limit, while Prabhu Smart Fund (PRSF) was the day’s biggest loser, falling 4.30%.

In terms of turnover, Nepal Reinsurance Company Ltd (NRIC) led with Rs 386.80 million, followed by Universal Power Company Ltd (UPCL) at Rs 183.08 million and Himalayan Distillery Limited (HDL) at Rs 181.68 million.

All 13 sectoral indices ended in the green, led by Non-Life Insurance, which surged 3.48%, while Mutual Funds rose the least, 0.63%.

Market capitalisation increased to Rs 4,484.01 billion from Rs 4,385.99 billion Sunday and Rs 4,199.25 billion last Thursday, reflecting renewed investor confidence following the recent political turbulence.