KATHMANDU, JULY 02
Today, the Nepal Stock Exchange (NEPSE) witnessed a decline as the NEPSE index concluded at 2,097.29 points, representing a loss of 53.70 points from the previous trading day and a decline of 2.50%.
The market had also experienced a loss of 35.37 points last Wednesday. One of the contributing factors to the market downturn is the fiscal year-end pressure. As the fiscal year draws to a close, investors and institutions typically adjust their portfolios and book profits to align with their financial objectives and obligations. This behavior introduces volatility and selling pressure, leading to a decrease in stock prices.
Furthermore, profit booking is another significant element that likely influenced the market's downward movement. Profit booking involves selling securities or stocks to realize gains acquired through price appreciation. Investors may decide to lock in their profits by selling their holdings when they perceive the market to have reached a relatively high point or anticipate a potential decline. This selling pressure results in a downward trend in the market.
It's important to note that market fluctuations are influenced by various factors, including economic indicators, geopolitical events, investor sentiment, and company-specific news. While fiscal year-end pressure and profit booking are potential reasons for the market decline, other factors may have also played a role in shaping the market's performance on this particular trading day.
Throughout the trading day, the NEPSE index displayed volatility, opening at 2,154.8 points, reaching an intraday high of 2,160.24 points, and dropping as low as 2,094.07 points before closing at 2,097.29 points.
In terms of trading volume, a total of 286 scrips were traded through 74,441 transactions. This resulted in the exchange of 11,323,183 shares, with a turnover amounting to Rs. 5.08 Arba. This is lower compared to the previous trading day's turnover of Rs. 5.97 Arba.
Himalayan Life Insurance Limited (HLI) emerged as the most actively traded stock, with a turnover of Rs. 42.56 crores and a closing market price of Rs. 549 per share.
On a positive note, BPW Laghubitta Bittiya Sanstha Limited (BPW) experienced a 10% gain and reached the positive circuit during the day, indicating a positive market sentiment towards the stock.
However, Shrijanshil Laghubitta Bittiya Sanstha Limited (SHLB) faced a 9.32% decline in its market price today.
Across all sectors, the market closed in the red. The "Microfinance" sector encountered the highest loss of 4.75%, while the "Mutual Fund" sector experienced the smallest decline of 0.78% for the day.
