NEPSE Ends Lower Amid Narrow Trading Range

The Nepal Stock Exchange (NEPSE) index slipped 0.30 percent, or 8.16 points, to close at 2,662.91 on Monday, February 16, extending its recent sideways trend as weekly trading resumed following Maha Shivaratri public holiday on Sunday.

A medium red candlestick with upper and lower shadows reflected investor indecision, analysts said, as the market continued to trade within a narrow range.

Turnover fell sharply to Rs 7.94 billion from Rs 11.10 billion in the previous session. A total of 19.61 million shares were traded through 80,559 transactions.

All major sub-indices ended lower. The Float Index declined 0.30 percent, the Sensitive Index 0.23 percent, and the Sensitive Float Index 0.26 percent. Of the traded companies, 86 advanced, 163 declined, and nine remained unchanged.

Among individual stocks, Buddha Bhumi Nepal Hydropower Company Limited, Reliance Spinning Mills Limited (RSML), and Salapa Bikas Bank Limited (SABBL) rose by the daily maximum of 10 percent. Khanikhola Hydropower Co. Ltd. posted the steepest loss, falling 9.38 percent.

RSML and Salapa Bikas Bank were listed on Friday, February 13, under NEPSE’s revised price determination mechanism, which sets the opening price range of newly listed shares based on par value rather than net worth. NEPSE fixed the opening band for both companies at Rs 100 to Rs 300.

Both stocks opened at Rs 300 and closed at Rs 330. RSML recorded 130 shares traded across 11 transactions, while Salapa Bikas Bank saw 180 shares traded in 18 transactions.

RSML, which issued its IPO through the book-building method, has publicly expressed concerns on the exchange’s pricing approach. The company argued that book-built IPOs require a different valuation framework than conventional offerings and warned that the current policy could undermine investor confidence. Qualified institutional investors had bid as high as Rs 912 per share during the IPO process, according to the company.

The company reported a net worth of Rs 490.54 per share as of the second quarter of the current fiscal year 2025/26. It said this supported a valuation closer to the institutional bid price. 

The Securities Board of Nepal had approved a public offering price of Rs 820.80 per share, set at a 10 percent discount to the highest institutional bid. Of the total shares, 40 percent were allocated to institutional investors and 60 percent to the general public.

In a statement issued on February 13, RSML said it had drawn the attention [of the concerned authorities] to the differences between the book-building method and traditional IPOs, and the need for a corresponding approach to initial price determination. The company said it was ultimately compelled to proceed with the listing after its concerns went unaddressed.

The firm reiterated that the Rs 912 valuation was based on detailed financial projections and assessments by expert institutions, not on speculative assumptions. As of the second quarter, RSML reported a net profit of more than Rs 137.4 million and operating income exceeding Rs 4.79 billion.

Meanwhile, hydropower stocks dominated the turnover chart on Monday. Ridi Power Company Limited led with Rs 650.32 million worth of shares traded, followed by Ankhu Khola Jalvidhyut Company Ltd at Rs 523.61 million and Ngadi Group Power Ltd at Rs 482.78 million.

All sectoral indices declined except finance, hotels and tourism, and manufacturing and processing. The hydropower index fell the most, down 1.02 percent, while the finance index gained 0.56 percent.

Market capitalisation fell to Rs 4,479.47 billion from Rs 4,484.79 billion in the previous session.