KATHMANDU: Nepal’s stock market saw a notable rise this week following the announcement of an investor-friendly monetary policy by the Nepal Rastra Bank.
The policy, which was introduced last week, was interpreted as flexible and capital market-friendly, triggering a wave of optimism among investors. As a result, the Nepal Stock Exchange (NEPSE) index gained significant ground, increasing by 138.83 points in just five trading days—from 2731.80 points to 2870.63.
The monetary policy came into effect at the start of the new fiscal year, and the market reacted with visible enthusiasm.
Except for Monday, when the market saw a minor correction, NEPSE posted strong growth throughout the rest of the week, with an average daily gain of 27.77 points. The week saw a total transaction volume of Rs 59.63 billion, with an average daily turnover of Rs 11.92 billion.
A total of 161.95 million shares were traded in 493,012 transactions, and on average, 318 companies were active in the market each day.
The week began positively on Sunday, with the NEPSE index rising by 29 points to close at 2760.80. The index fluctuated between a high of 2798.57 and a low of 2757.89. On that day, 32.59 million shares worth Rs 11.41 billion were traded in 105,415 transactions across 311 companies.
However, Monday brought a brief market correction as the index fell by 35 points to close at 2725.71, representing a 1.17 percent decline. Despite the drop, there was still notable movement, with the index ranging between 2765 and 2723. That day, 21.1 million shares worth Rs 8.17 billion were traded through 72,601 transactions across 321 companies.
The market rebounded on Tuesday, with the NEPSE index climbing 34.46 points to reach 2760.17. The day witnessed significant fluctuations, with the index touching a high of 2763 and a low of 2724.
Trading also picked up momentum, with 25.6 million shares valued at Rs 9.41 billion exchanged in 74,057 transactions involving 317 companies. Wednesday continued the upward trend, with the index gaining 34.61 points to close at 2794.78.
This marked the first time in several months that NEPSE crossed the 2800 mark. Throughout the day, the index ranged between 2759 and 2803. Trading volume soared, with 43.11 million shares worth Rs 14.03 billion exchanged in 99,505 transactions across 330 companies.
The week concluded on a high note as the new fiscal year officially began. On Thursday, the NEPSE index posted its largest single-day gain of the week, jumping 75.84 points to close at 2870.63, a 2.71 percent rise.
The index ranged from a low of 2796 to a high of 2878. The day saw a trading volume of 38.63 million shares worth Rs 16.59 billion through 141,434 transactions across 311 companies.
Market analysts attributed the strong performance to the confidence instilled by the new monetary policy, which signaled stability and potential liquidity support for the financial and capital markets. The surge in both trading volume and index levels indicates a fresh wave of investor optimism at the outset of the new fiscal year.
Comment