Nepal’s tourism and hospitality sector witnessed notable pressure in the stock market on Monday as the Hotels and Tourism Index registered a significant decline, falling by 85.40 points or 1.14 percent to close at 7,356.46 points. The drop comes just a day after the sector had recorded a modest gain of 17.45 points in the previous trading session.
The sectoral index opened trading at 7,429.35 points and showed volatility throughout the day, reaching an intraday high of 7,453.97 points before slipping to a low of 7,346.42 points and eventually closing lower by the end of the session.
The decline signals growing selling pressure within Nepal’s listed hotel and tourism companies, a sector that has remained closely watched by investors due to increasing expectations surrounding Nepal’s tourism recovery and long-term hospitality sector growth.
NEPSE Benchmark Index Extends Losses for Second Consecutive Session
The broader market also continued its downward trend as the Nepal Stock Exchange (NEPSE) benchmark index declined by 16.54 points or 0.62 percent, closing at 2,632.96 points.
This marks the second consecutive day of losses for the benchmark index after a similar decline was recorded during the previous trading session, reflecting cautious investor sentiment across multiple sectors.
The benchmark opened the day at 2,643.84 points and traded within a relatively narrow range, touching an intraday high of 2,649.11 points before falling to a low of 2,623.93 points during market hours.
Daily Turnover Crosses Rs 2.67 Arba Despite Market Decline
Despite the overall decline in market performance, trading activity remained relatively active throughout the session. According to market data, total daily turnover reached approximately Rs 2.67 Arba, indicating continued investor participation despite falling stock prices.
A total of 7,699,227 shares were traded during the day involving 351 listed companies through 44,942 separate transactions, highlighting steady liquidity across the secondary market.
Market analysts note that while turnover remains healthy, recent market corrections suggest that investors are currently adopting a more cautious approach amid short-term market fluctuations.
Market Capitalization Stands Above Rs 45 Kharba
Following today’s decline, the total market capitalization of Nepal’s secondary market stood at approximately Rs 45.09 Kharba, while float market capitalization was recorded at Rs 15.18 Kharba.
The sharp drop in the Hotels and Tourism Index has drawn particular attention as tourism-related stocks remain one of the sectors frequently monitored by investors expecting long-term growth from Nepal’s expanding travel, hotel, and hospitality industries.
Market observers believe investor sentiment in tourism-related stocks may continue fluctuating in the short term, depending on overall market conditions and broader economic indicators affecting investor confidence.
