Kathmandu, 5 April, 026. — Nepal’s stock market has witnessed a continuous decline over the past week, with the dropping by nearly 300 points to reach 2,676 points by Sunday. During the same period, the total market capitalization shrank by around NPR 4.5 trillion.
On Sunday alone, the index fell by 105.50 points (3.79%). Out of the companies traded that day, share prices of 261 companies declined, while only 7 companies recorded gains. A total of over 31.2 million shares were traded through 141,000 transactions, with the daily turnover reaching about NPR 12.38 billion.
Market analysts say recent government actions against some prominent business leaders have created psychological fear among investors. As a result, some large investors have started selling their shares, increasing downward pressure on the market.
Despite the decline, several economic indicators remain supportive of the stock market, including abundant liquidity in banks, historically low interest rates, and the removal of limits on share-backed loans. However, many investors are still in a “wait-and-watch” mode as they observe the policies and actions of the new government.
Experts believe the current downturn is largely driven by investor sentiment and market rumors, while the long-term fundamentals of the market remain relatively strong.
