Market extends losses for second day after new government formation

The stock market continued its downward trend for a second straight day on Monday, as investor sentiment remained weak following the formation of a new government.

The NEPSE index dropped by 47.71 points, closing at 2,831.39. Losses were recorded across all sector indices, with the trading sector seeing the sharpest fall of 2.56 percent. A total of 237 companies posted declines in their share prices.

This follows Sunday’s sharp drop of 71.05 points, when trading volume reached NRs 15.03 billion. On Monday, turnover also decreased, falling to NRs 12.96 billion.

Since the new government led by Balendra Shah was formed after the Falgun 21 elections, the NEPSE index has fallen by a cumulative 119 points. Before the government change, the index was around 2,950.

The market opened on a relatively stable note but slipped significantly as trading progressed through the day.

Despite the broader decline, 26 companies recorded gains, while five remained unchanged. Six companies hit the upper circuit limit, including Reliance Spinning Mills, Bhujung Hydropower, Ridgeline Energy, Hotel Forest Inn, Super Khudi Hydropower, and Suryakund Hydropower.

On the downside, Solu Hydropower saw the steepest drop of 7.79%, followed by Unique Nepal Microfinance, which fell 7.23%.

Ridi Power Company topped the list in terms of trading value, with shares worth NRs 684.1 million exchanged. Other actively traded stocks included Ngadi Group, Shivam Cement, and API Power.

Overall, the continued decline reflects cautious market behavior in response to recent political developments.