NEPSE Falls 1.62% Weekly to 2,587.25 as All 13 Sub-Indices Decline

Nepal Stock Market Weekly Analysis | NEPSE Index | Share Market Nepal

The Nepal Stock Exchange (NEPSE) ended the latest trading week under pressure, falling 1.62% or 42.56 points to 2,587.25. The benchmark index had closed the previous week at 2,629.81.

The weekly decline came despite five trading sessions, with only one session ending in positive territory while the remaining four sessions closed lower. The broad weakness indicates continued selling pressure across major segments of the Nepal stock market.

For investors and traders, the latest movement highlights the importance of combining NEPSE technical analysis, sector analysis, market volume and investor sentiment before making trading decisions.

NEPSE Weekly Performance at a Glance

NEPSE Trading Volume and Turnover Decline

The decline in the NEPSE index was accompanied by a significant reduction in market activity.

Average daily turnover fell to approximately Rs. 4.79 billion, compared with Rs. 6.28 billion in the previous week. This represents a 23.65% weekly decline in average daily turnover.

Average daily traded share volume also decreased by 39.61%, while the average number of daily transactions declined by 15.80%.

The combination of falling prices and weaker turnover suggests that market participation became more cautious during the week.

Investors should therefore monitor whether turnover begins to expand during a future market rebound. A price recovery supported by stronger volume can provide more convincing confirmation than a low-volume bounce.

Market Capitalization Drops by Rs. 73 Billion

The decline in share prices also reduced the total market capitalization of companies listed on NEPSE.

Market capitalization stood at approximately Rs. 45.23 trillion at the end of the previous week. By the end of the latest week, it had fallen by around Rs. 73 billion to Rs. 44.50 trillion.

This shows that the weekly correction was broad enough to affect the overall value of the Nepal equity market.

All 13 NEPSE Sub-Indices Close Lower

One of the most important features of the week's trading was that all 13 NEPSE sectoral sub-indices declined.

Hotel and Tourism Sector Records Biggest Percentage Drop

The Hotels and Tourism sub-index recorded the largest percentage decline, falling 2.71% during the week.

The index dropped from 7,171.19 to 6,977.08, representing a decline of 194.11 points.

Life Insurance Sector Posts Largest Point Decline

In terms of points, the Life Insurance sub-index suffered the largest decline.

It fell by 232.76 points, from 11,884.47 to 11,651.71, representing a weekly decline of 1.96%.

Banking Sector Shows Relatively Smaller Decline

The Banking sub-index recorded the smallest percentage decline among the major sectors, falling 0.68%.

It dropped 10.30 points from 1,504.77 to 1,494.47.

Meanwhile, the Mutual Fund sub-index recorded the smallest point decline, falling only 0.20 points.

Stocks With Notable Weekly Price Movements

Individual stocks showed mixed performance despite the broader market decline.

Sindhu Bikash Bank recorded a weekly price increase of approximately 7.20%.

The 10.75% SBL Debenture 2089 and Mandu Hydropower each gained around 7%, while Ghalemdi Hydro rose by approximately 6%.

On the declining side, Apollo Hydropower recorded the largest weekly loss among the stocks highlighted in the report, falling approximately 11.80%.

These movements demonstrate why investors should examine individual company fundamentals, technical structure, liquidity and market sentiment instead of relying only on the direction of the NEPSE index.

Bonus Shares Listed on NEPSE

During the week, shares of two companies were newly listed on NEPSE.

A total of approximately 1.64 million shares were listed following bonus-share distributions by United Ajod Insurance and Kalika Power.

New share listings can affect supply-demand dynamics and should be considered when analyzing the price and trading behavior of individual companies.

What Does the Latest NEPSE Decline Mean for Investors?

The latest weekly market performance presents a cautious picture for Nepal's stock market.

The NEPSE index declined for four out of five trading sessions, all 13 sub-indices ended lower, turnover declined significantly and market capitalization contracted.

However, a weekly decline by itself does not necessarily indicate the beginning of a prolonged bear market. Traders should monitor support and resistance levels, market volume, moving averages, RSI, ADX, sector rotation and price action before forming a stronger directional view.

For investors looking to improve their understanding of the Nepal stock market, learning both fundamental and technical analysis can help develop a more structured approach.

You can explore Sarbaguna's Share Market Training in Nepal and learn how to analyze market trends, sectors, stocks and trading setups.

NEPSE Technical Analysis: What Traders Should Watch

Following the weekly decline to 2,587.25, traders should pay close attention to the next important support and resistance zones.

Key areas to monitor include:

• Immediate support: Whether NEPSE can stabilize around the current zone
• Lower support: Previous swing lows and important technical retracement zones
• Resistance: The previous breakdown and rebound areas
• Volume: Whether buying volume increases during a recovery
• Momentum: RSI and ADX behavior
• Trend: Price position relative to important moving averages

A sustainable market recovery would ideally be accompanied by increasing turnover and improving breadth across multiple sectors.

Learn Stock Market and Trading in Nepal

Understanding the Nepal stock market requires more than following daily price movements. Investors need to understand fundamental analysis, technical analysis, risk management, market psychology, portfolio management and trading discipline.

Sarbaguna provides educational resources for people interested in learning about the NEPSE and Nepal share market.

Explore the Complete Share Market Learning Course in Nepal to build a stronger foundation in stock market investing and trading.

For traders interested in international financial markets, Sarbaguna also offers a Forex Trading Course in Nepal, covering important concepts related to forex markets, technical analysis, trading psychology and risk management.

Final Takeaway

The latest weekly performance confirms that the NEPSE remained under selling pressure, with the index losing 42.56 points or 1.62% to close at 2,587.25.

The broader market weakness is particularly notable because all 13 sectoral sub-indices declined, while average daily turnover fell by 23.65%.

The next few trading sessions will be important for determining whether the market can establish support and attempt a recovery or whether additional selling pressure develops.

Investors should avoid making decisions based solely on one week's movement. Combining technical analysis, fundamental research, volume analysis and disciplined risk management remains essential in a volatile stock market.

Frequently Asked Questions About NEPSE Weekly Market Performance

1. How much did NEPSE fall this week?

NEPSE fell 42.56 points or 1.62%, closing at 2,587.25 compared with the previous week's close of 2,629.81.

2. How many NEPSE sectors declined this week?

All 13 NEPSE sub-indices recorded weekly declines.

3. Which NEPSE sector fell the most?

The Hotels and Tourism sub-index recorded the largest percentage decline, falling 2.71%.

4. Which sector recorded the largest point decline?

The Life Insurance sub-index recorded the largest point decline, falling 232.76 points.

5. What happened to NEPSE's average daily turnover?

Average daily turnover declined from approximately Rs. 6.28 billion to Rs. 4.79 billion, a decrease of about 23.65%.

6. What happened to Nepal's stock market capitalization?

Total NEPSE market capitalization declined by approximately Rs. 73 billion, from Rs. 45.23 trillion to Rs. 44.50 trillion.

7. Is the NEPSE decline a buying opportunity?

A market decline does not automatically mean that every stock is a buying opportunity. Investors should evaluate individual company fundamentals, technical levels, valuation, liquidity and risk before making an investment decision.

8. How can I learn NEPSE technical analysis?

You can study technical indicators such as support and resistance, moving averages, RSI, MACD, ADX, Fibonacci retracement, trendlines and price action through a structured stock-market training program.

9. Where can I learn Forex trading in Nepal?

Sarbaguna provides a Forex Trading Course in Nepal designed to help learners understand forex markets, technical analysis, trading psychology and risk management.

10. Where can I get stock market training in Nepal?

Sarbaguna offers Stock Market Training in Nepal covering important areas of stock market investing and trading.

Disclaimer

This article is provided for educational and informational purposes only. Market conditions can change rapidly, and past performance does not guarantee future results. Investors should conduct their own research and consider their risk tolerance before making investment decisions.