NewBiz Report

KATHMANDU, July 17: The daily turnover at the Nepal Stock Exchange (NEPSE) reached nearly a three-year high on Wednesday, with share transactions worth Rs 12.05 billion. This marks the highest turnover since August 21, 2021, when transactions amounted to Rs 13.25 billion.

The stock market began to rise following the news of a coalition agreement between the two largest parties, the Nepali Congress and the CPN (UML). The market has been bullish for the past two days since the formation of the KP Oli-led government, with the benchmark index surging by 124.22 points.

 On Wednesday, the Nepse index surged by 54.04 points, closing at 2364.63 points, the highest since May 11, 2022, when it reached 2369.06 points. Investor confidence has rebounded, leading to increased trading volumes. Share volumes rose to 32.09 million on Wednesday, up from 23.89 million on Tuesday. All sub-indices at Nepse showed gains, with the hotel and finance sectors leading the way.

Stock analysts attribute the recent stock market surge to various factors, including renewed investor confidence. Factors such as the formation of a new government, ample liquidity in the banking system, and continued low interest rates have bolstered investor trust in the stock market. The uptick in trading volumes indicates a resurgence in investor activity, with increased buying and selling of stocks.

During Wednesday's trading session, share prices of 204 companies saw gains, while six experienced losses. Singati Hydro Energy Limited (SHEL) led in turnover with Rs 235.5 million, and Himal Dolakha Hydropower Company Limited (HDHPC) had the highest trading volume.

On Wednesday, Central Finance Co. Ltd. (CFCL) hit the upper circuit limit after its share price surged by 10 percent. Additionally, shares of five companies—Singati Hydro Energy, Ankhu Khola Jalvidyut Company, Mandakini Hydropower Limited, CEDB Hydropower Company Limited, and Aarambha Chautari Lagubitta—rose by more than nine percent.