Sunday saw the initiation of the week with a somewhat pessimistic trend in the stock market. The NEPSE index, a primary gauge for stock market behavior, witnessed a marked descent, concluding at 2749.83 points – a dip of 31.17 points. This downward motion tends to convey an extensive market sentiment leaning towards selling. The ‘A’ category stocks monitored via the sensitive index also followed suit, ending up at 472.64 points, thereby registering a 5.03 points reduction.
In line with the general trend, the float index and the sensitive index suffered reductions as well, with the former descending by 2.31 points and the latter, by 1.84 points. Adding depth to the day’s market color, transactions involving a total 14,805,569 shares from 321 companies took place on Sunday. This rendered a total turnover amounting to NPR 6.06 billion.
Comparatively, the numbers fell short of the preceding Thursday’s trading session. The earlier day marked a passage of 17,891,917 shares from 322 companies, accumulating a turnover of NPR 8.09 billion. Meanwhile, the market capitalization, essentially reflecting the aggregate value of all publicly traded companies, was pegged at NPR 45.95 trillion.
Interestingly, amongst all companies, only 21 observed their share prices surge while the remaining overwhelming majority, to be precise, 228 companies, underwent a decrease in prices. It wasn’t just the individual companies, but all the thirteen distinct sectoral indices as well that were not spared from this reducing trend.
The series of sectors impacted were wide-ranging. The Commercial Bank sector bore the brunt of the reduction, as did Development Banks. The Finance sector wasn’t left untouched either.
Evidence of the market’s pessimism extended to the Hotels and Tourism sector, which was also subject to a price decrease. Additionally, the Hydropower sector mirrored the overall trend with prices moving downwards.
Price reductions were also apparent across the Investment sector. The trend further spilled over to the Life Insurance & Manufacturing and Processing sectors, which endured a retreat in their respective indices.
The Microfinance sector shared a similar fate of contraction, with decreasing share prices. Moreover, the Mutual Funds sector also felt the sting of the general downside sentiment.
The Non-life Insurance sector couldn’t escape the general market downturn as its shares also took a dip. Oscillating in line with the general dip were the sectors of Trade, along with the Other group sector, both of which noted a downturn.
As for the trading spotlight, it was commanded by Nepal Reinsurance, Himalayan Reinsurance, Himalayan Distillery, and People’s Power Limited, courtesy of their high-volume trading. Nepal Reinsurance stood tall with transactions amounting to NPR 454.6 million.
Not far behind and trailing close was Himalayan Reinsurance, accounting for a sizeable NPR 288.8 million in transactions. Sharing the high-trade spotlight was Himalayan Distillery with an impressive trading volume that resulted in NPR 263.3 million.
Completing the quartet of high-volume traders was People’s Power Limited with substantial transactions valued at NPR 183.9 million. This market review captures the contours of Sunday’s stock market developments with all their significant variations and nuances.
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