Indications of Improvement in NEPSE, Index Rises but Trading Volume Decreases

Kathmandu - The Nepal Stock Exchange (NEPSE) index has closed higher on the second trading day of the week. After experiencing a downward trend for six consecutive days, NEPSE increased by 26.10 points on Monday, reaching 2640.78 points. 

On this day, the Sensitive Index rose by 4.09 points, the Float Index by 1.78 points, and the Sensitive Float Index by 1.28 points. However, the trading volume appears to have decreased. While the previous day saw a trading volume equivalent to 6 Arba 32 crore rupees, on Monday it was limited to 4 Arba 48 crore rupees. 

Though indicators from all groups showed green, particularly the financial subgroup advanced by 3.52%. The share price of Guardian Micro Life Insurance increased the most by 9.51%, while the share price of Upper Hewa Khola Hydropower decreased by 4.26%. Based on trading volume, Himalayan Reinsurance remained in the lead with shares traded worth 32 crore 69 lakh rupees. 

Previously, a sense of panic had increased among investors as the market declined for 12 out of 13 consecutive days. However, the improvement on Monday signals a potential return to market balance. Although the market remains in the trend of a bull run, the recent correction was quite sharp in the short term. Due to pressure on borrowers, some shares had to be forcibly sold. 

Analysis suggests that the potential for improvement exists due to liquidity in the market and low interest rates. Investors appear optimistic with the hope that the financial conditions of listed companies will improve. The trading trends in the coming days will further clarify the market's future direction.