Week in NEPSE: Feb 8 - 12
NEPSE opened the week on a weaker note, slipping 10.15 points from the previous Thursday’s close.
The index started on Sunday (Feb 8) at 2,698.45, down from the previous week’s close of 2,708.6. Fall persisted through midweek, dragging the index to a weekly low of 2,655.3 on Tuesday (Feb 10). Similarly, trading activity also weakened, falling from NRs 11.59 billion on Sunday to NRs 8.57 billion by Tuesday.
NEPSE price movement [Feb 8 - 12]
On Thursday, however, the index recovered mildly. NEPSE rose to 2,671.07, while turnover improved to NRs 10.9 billion. Throughout the week, turnover reached NRs 50.23 billion, higher than the previous week’s NRs 44.4 billion.
Sectoral highlight
This week, the NEPSE index fell to red. Other main indices, the sensitive index and float index, also declined by 0.64% and 0.98%, respectively, indicating low participation across both large-cap and tradable stocks.
Index highlights
The hotels and tourism sector was the hardest hit, dropping 4.10%.
The finance index fell 3.10%, development banks dropped 1.18%, and banking dipped 0.42%. Insurance stocks also struggled, with non-life Insurance down 2.09% and Life Insurance falling 1.47%. Manufacturing and processing also declined 1.74%, and microfinance fell 1.18%.
The Others Index slipped 2.81%, while Investment and Mutual Funds lost ground modestly, at 0.75% and 0.42% respectively.
On the gainers’ side, hydropower gained 0.64% as select energy stocks attracted demand, and the trading index rose 0.44%, amid a broadly negative session.
Stock gainers and losers
The hydropower sector dominated the market this week. Ridi Power (RIDI) and Khani Khola Hydropower (KKHC) stocks frequently appeared among the top gainers.
On the gainers' side, other hydropower stocks such as Super Mai Hydro (SMH), Liberty Energy Company (LEC), National Hydropower Company (NHPC), People Hydropower (PHCPL), Arun Valley Hydropower (AHPC), Singati Hydro Energy (SHEL), and Joshi Hydropower Development (JOSHI) also gained.
Kalinchowk Darshan Limited (KDL), listed under hotel and tourism, was on the losers’ list on Sunday and Monday, but ascended to the gainers' list on Tuesday. Microfinance company Aatmanirbhar Laghubitta (ANLB) and manufacturing and processing company Shreenagar Agritech (SAIL) posted growth.
Top 5 gainers and losers
On the losing side, Corporate Development Bank (CORBL), Narayani Development (NABBC), Mabilung Energy (MABEL), Super Madi Hydropower (SMHL), Synergy Power Development (SPDL), and other stocks struggled.
Market watch: News. policies, and listing
SEBON formalises margin lending directives, sets eligibility rules for firms and brokers
This week, the Securities Board of Nepal (SEBON) introduced its “Margin Trading Facility Directive, 2080”, setting out a regulatory framework for how stockbrokers can extend loans to investors for share purchases.
As per the directive, investors can now borrow from brokerage firms to invest in stocks for which they must deposit a minimum of 30% initial margin before trading and maintain 20% thereafter. Brokers are required to issue margin calls if collateral falls below the threshold.
[Read more on this here: SEBON’s another attempt at changing how stocks are traded in Nepal]
Nepal secures $50 million loan from World Bank for a nationwide digital upgrade
The World Bank has approved $50 million for the Nepal Digital Transformation Project. The funding will support the digitalisation of public services and build a national digital public infrastructure
The initiative will develop shared digital platforms to deliver services across government agencies. This includes an online citizen portal, an integrated social registry, a secured government-wide data exchange, and digital lockers for storing verified credentials. Moreover, high-impact services such as land administration and other services will also be digitalised in phases.
The program also supports private sector investment in the data infrastructure through an improved regulatory framework. It aims to bolster cybersecurity, electronic signatures, and data governance, fostering trust in Nepal’s digital economy.
The project has a total cost of $90 million. Asian Development Bank, as a co-financer under the Full Mutual Reliance Framework (FMRF), is expected to contribute $40 million. Implementation will be led by the Ministry of Communication and Information Technology, together with the Department of National ID and Civil Registration.
The funds will be invested in upgrading different digital components:
Government cuts budget by NRs 276 billion, revises growth rate to 3.5%
The Ministry of Finance has slashed nearly NRs 276 billion from this year’s budget and lowered the economic growth forecast from 6% to 3.5%, citing weak capital spending, election-related costs, and sluggish sectoral performance.
Capital projects are lagging; just 12% of funds have been used, and NRs 119.5 billion worth of projects have been suspended due to poor preparation. Recurrent spending was trimmed marginally, with 20 billion redirected to national elections and logistical support.
Revenue collection has reached NRs 581.4 billion, domestic borrowing is nearly half of the annual target, and foreign aid commitment totals NRs 65.39 billion, mostly loans.
[Read more on this here: Government slashes budget by nearly 276 billion, lowers growth forecast to 3.5%]
Nepal drafts climate mitigation plan for the next decade, estimates financing need of 115 billion dollars
Nepal has finalised a draft for its 10-year National Climate Change Mitigation and Adaptation Implementation Plan, in alignment with its Third Nepal Determined Contribution (NDC).
The total cost of the NDC’s quantified mitigation targets, greenhouse gas reduction, till 2035 is estimated to be USD 73.74 billion (14.68% unconditional and 85.32% conditional). Additional $41.01 billion is estimated for policy work, adaptation, loss and damages, transitional justice and human rights. The plan covers eight sectors: agriculture, forestry, biodiversity, water and energy, settlements, industry and transport, tourism, and health and disaster management. It largely depends on the fulfillment of climate finance, which accounts for 85% of the estimated financing.
Funds will flow through the Green Climate Fund, domestic agencies, and global climate finance instruments, including the LDC Fund and Loss and Damage Fund. The plan envisions encouraging the private sector to invest in clean energy and climate-friendly hydropower, with coordination from the government.
Six committees spanning provincial, inter-ministerial, national, and parliamentary levels will oversee the implementation. Public consultation on the plan remains open until February 22, 2026.
Nepal sees growing internet and smartphone access, four in five households use internet-enabled devices
82% of households now use an internet-enabled device, and 85.1% own at least one smartphone, reports the Nepal Multiple Indicator Cluster Survey (NMICS) 2024/25 showing significant strides in digital connectivity. Urban households lead with 86.5% internet access, compared to 73% in rural areas. Provincial disparities remain, with Gandaki at 87.5% and Karnali at 68.5%. Economically, wealthier households enjoy near-universal connectivity (99.2%), while only 52.9% of economically disadvantaged households are online.
Despite these gains, digital skills remain low. Only 3.1% of people can write a program, 10.2% use spreadsheet formulas, and less than a quarter (24.2%) can perform basic file management. Online information verification is practiced by just 19.2%, highlighting a pressing need for digital literacy initiatives.
While 4G reaches 98% of local levels and fiber connections expand across 77 districts, the survey emphasizes that access alone is not enough. Bridging the digital skills gap is crucial for productivity, safety, and meaningful online participation.
The survey also raises public health concerns and uneven development
About 4.5% of children in primary school and 13.2% in secondary school are out of school. The infant mortality rate is 27 deaths per 1,000 live births, while the under-five mortality rate is slightly higher at 31 per 1,000 live births. Neonatal mortality, which refers to deaths within the first month of life, was reported at 17 per 1,000 live births. 26.2% of children under five are stunted.
While 98% use improved water sources, 60% of the tested samples contain Escherichia coli (E. coli). Health insurance coverage is limited. Fewer than 20% of adults aged 15-49 are insured, and coverage among children is lower.
Siddhartha Pharmaceuticals to raise capital
Siddhartha Pharmaceuticals Limited is set to issue an IPO.
Founded in 1989. Siddhartha Pharmaceuticals is a WHO Good Manufacturing Practices (GMP) and a National GMP Certified Company, which claims to produce safe, quality, and affordable pharmaceutical products.
The company is issuing one million ordinary shares and has appointed Siddhartha Capital for the issuance.
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