The Hotels and Tourism Index continued its downward trend on Wednesday, posting a notable decline of 47.07 points (0.63%) to close at 7,335.80, reflecting sustained pressure in tourism-related stocks. The fall follows a 35.65-point loss recorded in the previous trading session, indicating cautious investor sentiment toward the sector despite the ongoing peak tourism season.
Intraday Volatility Seen in Tourism Stocks
The sectoral index opened the session at 7,382.89 and experienced fluctuations throughout the day. It climbed to an intraday high of 7,511.74 before slipping to a low of 7,303.60, eventually settling lower by the close. Market observers attribute the volatility to profit booking and short-term corrections following earlier gains in hospitality and travel-related shares.
Analysts note that while Nepal’s tourism fundamentals remain strong, investors appear to be adopting a wait-and-see approach, particularly ahead of key seasonal performance indicators and broader market cues.
Broader Market Shows Marginal Movement
Meanwhile, the benchmark Nepal Stock Exchange (NEPSE) Index remained almost unchanged, edging down by just 0.04 points (0.00%) to close at 2,662.09. This follows a sharper 10.25-point decline in the previous session, suggesting that the broader market is stabilizing even as sector-specific corrections continue.
The NEPSE opened at 2,673.96, reached an intraday high of 2,692.55, and dropped to a low of 2,656.36 during the day’s trading, reflecting mild fluctuations without a decisive directional move.
Trading Activity Remains Moderate
Despite the marginal index movement, trading activity remained relatively robust. The day recorded a total turnover of Rs. 8.69 Arba, with 22,282,050 shares changing hands across 329 listed companies through 82,450 transactions. The figures indicate sustained investor participation, even as the market searches for clear momentum.
Market Capitalization Stands at Rs. 44.69 Kharba
By the close of trading, total market capitalization reached Rs. 44.69 Kharba, while the float market capitalization stood at Rs. 15.20 Kharba. These figures highlight the continued scale and resilience of Nepal’s equity market despite short-term fluctuations.
Investor Sentiment Mixed Across Sectors
Market participants suggest that the decline in the Hotels and Tourism Index may reflect near-term adjustments rather than a structural slowdown. With Nepal actively promoting international tourism, hosting global events, and improving connectivity, long-term prospects for the sector remain positive, though equity performance may continue to see intermittent corrections.
The broader NEPSE’s flat performance signals a phase of consolidation, as investors balance sector-specific risks with expectations of economic recovery, infrastructure spending, and tourism-led growth in the months ahead.
