NEPSE Weekly Turnover Declines as Number of Transactions Rises

The Nepal Stock Exchange (NEPSE) witnessed a sharp decline in overall turnover this week compared to the previous week. By the end of trading on September 5 (Bhadra 15), the total weekly turnover stood at Rs. 25.47 billion, down from Rs. 32.26 billion last week — a drop of 21.04%.

Decline in Daily Turnover and Traded Shares

The average daily turnover fell to Rs. 5.09 billion, compared to Rs. 6.45 billion the week before, also reflecting a 21% decline. Similarly, the total traded shares decreased to 60.82 million units, down by 9.22% from last week’s 67 million units.

Surge in Number of Transactions

Interestingly, while turnover and traded shares decreased, the total number of transactions increased significantly. This week, NEPSE recorded 393,342 transactions, a 26.36% rise compared to last week’s 311,285 transactions.
This indicates that investors were active in smaller trades, while large-volume trades were relatively subdued.

Market Capitalization Shrinks

The total market capitalization dropped to Rs. 4,546,743.12 million (Rs. 45.46 Kharba), down from Rs. 4,647,185.19 million last week — a decline of 2.16%.
Meanwhile, the float market capitalization fell by 1.99%, from Rs. 1,572,571.25 million to Rs. 1,541,328.53 million.

Market Interpretation

The NEPSE Index closed at 2,719.77 points, down 61.23 points from last week. Technical analysis shows that the index is currently near the 2,700 support level.
The rise in the number of trades despite lower turnover suggests retail investors are still actively trading, while big investors seem to be holding back.

the market remains under bearish pressure, with the 2,700-point support level expected to play a critical role in determining the market’s next move in the coming week.