The Hotels and Tourism Index continued its downward trend on the second trading day of the week, recording a significant decline amid a broader fall in the Nepal Stock Exchange (NEPSE).
Hotels and Tourism Index Sees Notable Drop
The Hotels and Tourism Index fell by 89.84 points, or 1.18 percent, to close at 7,497.48. The sector had already witnessed a sharp decline of 173.81 points in the previous trading session, indicating sustained pressure on tourism-related stocks.
The index opened at 7,587.03 and reached an intraday high of 7,646.95 before dropping to a low of 7,486.30 during the day’s trading.
NEPSE Records Broad Market Decline
The overall market also remained bearish, with the NEPSE index dropping by 47.71 points, or 1.65 percent, to settle at 2,831.39.
The benchmark index opened at 2,881.98 and climbed to an intraday high of 2,891.53 before falling to a low of 2,821.82, reflecting volatility throughout the trading session. Market analysts noted that the decline comes despite recent political developments, including the formation of a new government and expectations of policy reforms aimed at restructuring the market.
Trading Volume and Market Activity
Despite the decline, trading activity remained robust. The total turnover for the day reached Rs. 12.96 billion, with 31.6 million shares of 341 companies traded through 159,328 transactions.
Market capitalization stood at Rs. 48.13 trillion, while the float market capitalization was recorded at Rs. 16.26 trillion.
Investor Sentiment Remains Weak
The continued downturn in both the tourism sector and the broader market indicates cautious investor sentiment. Analysts suggest that uncertainty surrounding policy implementation and market reforms may be contributing to the ongoing volatility.
The back-to-back losses in the Hotels and Tourism Index highlight concerns within the sector, which is closely tied to broader economic performance and investor confidence. Market observers believe that clarity in government policies and effective implementation of reform measures will be crucial in restoring investor confidence in the coming days. Until then, the market is likely to remain volatile, with sectoral indices such as hotels and tourism continuing to face pressure.
