KATHMANDU: The Nepal Stock Exchange (NEPSE) experienced a day of high volatility on Wednesday, as optimism following the appointment of a new central bank governor initially drove the market sharply higher before it eventually closed slightly lower.
A day earlier, speculation surrounding the appointment of Dr. Biswo Poudel as the new Governor of Nepal Rastra Bank had lifted the market by 49 points.
Many investors anticipated that the official appointment would give the market further momentum. That optimism was evident at the start of trading, with the index surging by nearly 94 points within the first three minutes, reaching an intraday high of 2,771 points.
As the index approached the 4 percent threshold that would trigger a circuit breaker, selling pressure intensified.
The index was unable to hold its early gains and gradually declined throughout the session. By market close, the index had fallen to 2,669 points—102 points lower than the day’s peak. This marked a decline of 7.94 points from the previous day’s close.
Despite the slight drop in the index, the total turnover increased significantly. Wednesday’s trading volume reached Rs 10.69 billion, compared to Rs 7.31 billion on Tuesday, reflecting heightened investor participation.
Out of the traded companies, 93 saw gains while 153 declined and one remained unchanged. Sector-wise performance was mixed. The banking and development bank indices saw minor increases, while most other sectors—including hydropower, finance, manufacturing, insurance, microfinance, and trading—closed lower.
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