NEPSE Weekly Market Recap (May 11–16, 2025) | Nearly 50-Point Drop Amid Bearish Sentiment & Regulatory Shakeups

The Nepal Stock Exchange (NEPSE) closed a shortened four-day trading week on a bearish note, shedding nearly 50 points as investor sentiment remained cautious amid regulatory scrutiny and political uncertainty in the capital markets.

The benchmark NEPSE index opened on Sunday, May 11, at 2661.64 points and ended on Thursday, May 15, at 2611.85 points, reflecting a weekly loss of 49.79 points or 1.87%. The market remained closed on Monday, May 12, in observance of Buddha Jayanti.

Market Performance Overview

The index posted consecutive losses throughout the week, averaging a daily decline of approximately 12 points. Daily turnover also declined steadily from Rs. 10.20 Arba on Sunday to Rs. 7.85 Arba by Thursday, reflecting investor hesitation.

• Sunday, May 11: NEPSE fell by 12.53 points (0.47%) to close at 2649.11. Over 24 million shares were traded across 300 companies with a turnover of approximately Rs. 10.20 to Rs. 10.27 Arba. Radhi Bidyut Company Ltd (RADHI) topped the turnover chart with Rs. 66.1 Crores, while Sindhu Bikash Bank Ltd (SINDU) suffered the steepest decline, plunging 7.30%.

• Tuesday, May 13: The index dropped another 14.87 points (0.56%) to close at 2634.24. Turnover stood at Rs. 9.63 Arba with 21.8 million shares traded. Universal Power Company Ltd (UPCL) led the turnover tally with Rs. 67.2 Crores. Nepal Micro Insurance Company Ltd (NMIC) was the biggest loser, down 6.22%.

• Wednesday, May 14: NEPSE declined by 13.96 points to settle at 2620.28. The Hotels and Tourism sector posted notable gains of 322.82 points, but major sectors including hydropower, development banks, and insurance remained under pressure.

• Thursday, May 15: The week concluded with a drop of 8.41 points, with NEPSE closing at 2611.85. Turnover further dropped to Rs. 7.85 Arba.

Weekly Summary

The cumulative turnover for the week amounted to Rs. 35.65 Arba, with over 8.17 crore shares traded through 382,470 transactions. The market capitalization at week’s end stood at Rs. 4.34 trillion (Rs. 43.44 Kharba). The NEPSE index remained below both its 5-day and 20-day Exponential Moving Averages, confirming a bearish technical trend.

Among individual performers, Om Megashree Pharmaceuticals Limited (OMPL) surged 46.35% to close at Rs. 636.20, becoming the week’s top gainer. Conversely, SINDU was among the top losers, falling 19.17%. RADHI emerged as the most traded stock with a total turnover of Rs. 2.15 Arba. Naasa Securities (Broker No. 58) led both on the buy and sell side, purchasing stocks worth Rs. 2.11 Arba and selling Rs. 1.94 Arba.

Regulatory Developments

A major headline of the week was a raid by the Commission for Investigation of Abuse of Authority (CIAA) on the office of the Securities Board of Nepal (SEBON) on Wednesday, May 14. The investigation followed accusations from hydropower developers alleging demands for commissions in the IPO approval process.

SEBON Chairperson Santosh Narayan Shrestha denied personal involvement, labeling the accusations as baseless and politically motivated. He pledged to resign immediately if any wrongdoing was proven. The Independent Power Producers’ Association, Nepal (IPPAN) clarified that its members reported demands from intermediaries, not SEBON officials directly.

SEBON also halted Butwal Power Company’s attempt to offload 3.1 million shares of Nyadi Hydropower Ltd, citing conflict-of-interest violations under Rule 38(9)(a) of the Securities Registration and Issuance Regulation, 2073.

IPOs and Corporate Actions

Several developments occurred in the primary and secondary markets:

• Wean Nepal Laghubitta’s FPO shares were listed on May 16.

• Sanvi Energy Ltd will issue 24.15 lakh IPO shares from May 22 (Jestha 9).

• Salapa Bikas Bank Ltd’s IPO was added to SEBON’s pipeline.

• Bikash Hydropower Ltd is opening an IPO for locals and migrant workers starting May 19 (Jestha 6).

• Dordi Khola Jal Bidyut Co. will auction unallotted right shares from May 24 (Jestha 11).

• Doleshwor Village Resort signed an advisory MoU with Citizens Capital for its IPO process.

Dividend declarations also featured prominently:

• Bottlers Nepal (Terai) Ltd declared a 50% cash dividend.

• National Life Insurance Co. Ltd announced a 15% dividend.

• LIC Nepal and Prabhu Mahalaxmi Life Insurance also proposed dividends, with the latter calling its AGM for June 8 (Jestha 26) to endorse an 8.421% payout.

Earnings and Banking Supervision

Corporate earnings were mixed.

• Himalayan Reinsurance Ltd posted healthy growth in net profit, premium collections, and EPS.

• Chandragiri Hills Ltd reported a slight year-on-year profit increase to NPR 108.8 million, despite a dip in revenue.

• Hydroelectricity Investment and Development Company Ltd (HIDCL) saw its Q3 profit slump to NPR 729 million from NPR 1.09 billion, attributed to lower financial income.

• The life insurance sector collectively reported a 12% increase in profit.

Separately, the Nepal Rastra Bank (NRB) penalized 11 financial institutions—including five commercial banks, three development banks, and three finance companies—for violations such as improper loan classification, non-compliance with capital requirements, and lending to related parties.

Outlook

With the index now approaching a key support zone between 2,600 and 2,560, analysts suggest a cautious outlook remains warranted. Resistance remains near 2,730, with investor confidence likely to be shaped by regulatory clarity, IPO activity, and broader macroeconomic cues in the coming weeks.