Nepal’s stock market witnessed another subdued trading session on Thursday as the Hotels and Tourism Index extended its losses with a double-digit decline, while the broader benchmark index of the Nepal Stock Exchange (NEPSE) also closed in negative territory amid cautious investor sentiment.
The continued decline in the tourism-related sub-index reflects sustained weakness in investor confidence toward hospitality and travel sector stocks, even as the broader market remained relatively stable with only a marginal fall.
Hotels and Tourism Index Drops Over 31 Points
The Hotels and Tourism Index recorded a notable decline of 31.01 points, or 0.40 percent, closing the day at 7,630.65 points. The sector had already witnessed a sharper fall in the previous trading session, losing 49.81 points, indicating a continuing downward trend for tourism-related shares.
During Thursday’s trading session, the index opened at 7,606.07 points and showed moderate volatility throughout the day. It climbed to an intraday high of 7,707.16 points, while touching a low of 7,592.64 points before settling lower at market close. Market analysts say the continued correction in tourism stocks may reflect short-term profit booking as well as a cautious investor outlook toward the sector despite Nepal’s improving tourism recovery indicators.
Broader NEPSE Index Ends Slightly Lower
The broader benchmark index of the Nepal Stock Exchange also ended the session in negative territory, slipping 5.06 points, or 0.18 percent, to close at 2,700.47 points. The decline follows a largely flat session a day earlier, when the market had posted only a marginal gain of 0.08 points, suggesting that investors continue to remain cautious amid mixed market signals.
The benchmark opened trading at 2,698.34 points and fluctuated within a narrow range throughout the session. It touched an intraday high of 2,709.79 points, while the day’s lowest point stood at 2,692.76 points, before ending slightly below opening levels.
Daily Turnover Crosses Rs 3.41 Billion
Despite the market decline, trading activity remained relatively active with total daily turnover reaching Rs 3.41 billion. According to market data, investors traded 7,743,030 shares of 347 listed companies through a total of 41,104 transactions during the session.
The steady turnover indicates that market participation remains strong even as price movements continue to fluctuate within a narrow range. Analysts note that investors are actively rotating funds across sectors while closely monitoring economic indicators, monetary policy expectations, and corporate performance.
Market Capitalization Remains Above Rs 46 Trillion
Following the day’s trading activity, total market capitalization on the Nepal Stock Exchange stood at Rs 46.14 trillion. Meanwhile, float market capitalization, representing shares actively available for public trading, reached Rs 15.51 trillion, reflecting the substantial scale of Nepal’s growing equity market. While the overall market remains above the 2,700-point psychological level, continued weakness in sectoral indices such as hotels and tourism suggests investors remain selective in their trading decisions.
Tourism Sector Stocks Under Pressure Despite Industry Recovery
The continued decline in the Hotels and Tourism Index comes at a time when Nepal’s tourism sector has shown signs of recovery in terms of international arrivals and hospitality demand. However, stock market performance often reflects broader investor expectations around profitability, earnings growth, and sector-specific outlook rather than immediate tourism numbers.
Market observers say investors may be reassessing valuations in tourism stocks after recent gains earlier in the year, leading to short-term corrections across hotel and hospitality companies listed on the exchange. With NEPSE maintaining relative stability while tourism stocks continue to weaken, investors are expected to watch upcoming market sessions closely for clearer direction across sectoral indices.
