Nepal’s stock market ended Friday’s trading session on a mixed note as the Hotels and Tourism index posted a modest recovery, while the broader Nepal Stock Exchange (NEPSE) benchmark index continued its downward trend, reflecting cautious investor sentiment across the market.
Although the overall market closed marginally lower, increased turnover and gains in tourism-related stocks indicated selective buying activity in certain sectors following losses recorded in the previous session. Market analysts said investors remained cautious overall, but some renewed confidence was visible in hospitality and tourism stocks after back-to-back declines earlier this week.
Hotels and Tourism Index Returns to Positive Territory
After suffering a sharp decline in the previous trading session, the Hotels and Tourism Index staged a modest rebound on Friday. The sectoral index gained 17.45 points, or 0.23 percent, closing at 7,441.87 points. The recovery came after the tourism index had fallen 39.80 points in Thursday’s session, making Friday’s gain a partial recovery for tourism-related stocks listed on the exchange.
During the day’s trading, the sector opened at 7,425.47 points and moved within a relatively narrow range. The index touched an intraday high of 7,468.66 points, while falling to a low of 7,419.20 points before finishing the session in positive territory. Analysts said the rebound suggests investors are gradually returning to tourism and hospitality stocks amid optimism surrounding Nepal’s growing tourism recovery and expanding hospitality sector investments.
NEPSE Benchmark Index Extends Losses
Despite gains in the tourism sector, the overall NEPSE benchmark index continued to decline for the third consecutive session. The market slipped by 2.00 points, or 0.07 percent, closing at 2,649.51 points. The benchmark had already fallen 8.50 points in the previous trading session, indicating that broader market sentiment remains relatively weak despite sector-specific gains. Trading began at 2,649.77 points, and the market witnessed moderate fluctuations throughout the session.
During intraday trading, NEPSE climbed to a high of 2,662.44 points, while also touching a low of 2,640.26 points before ending slightly lower at the closing bell. Market observers say the limited decline indicates the market may be stabilizing after several sessions of losses.
Daily Turnover Nears Rs 4 Billion
While the market remained under pressure overall, trading activity increased significantly compared with the previous session. According to official market data, total turnover for the day reached approximately Rs 3.94 billion, reflecting strong investor participation across multiple sectors. A total of 7,727,649 shares were traded during Friday’s session involving 359 listed companies.
The transactions were completed through 39,546 individual trades, showing that market activity remained active despite the slight decline in the benchmark index. Analysts said improved turnover often indicates continued investor interest even during periods of short-term market correction.
Market Capitalization Remains Above Rs 45 Trillion
Following Friday’s session, Nepal’s total stock market valuation remained above the major Rs 45 trillion mark. The total market capitalization of NEPSE stood at approximately Rs 45.34 trillion, maintaining the overall size of Nepal’s growing equity market.
Meanwhile, the float market capitalization, which measures publicly tradable shares available in the market, stood at Rs 15.26 trillion. Despite short-term fluctuations, market capitalization figures continue reflecting the broader strength and scale of Nepal’s capital market.
Tourism Stocks Continue Drawing Investor Attention
The positive performance of the Hotels and Tourism Index has once again drawn attention to Nepal’s hospitality sector, which has become increasingly attractive to investors amid strong tourism recovery. The sector has gained momentum in recent months due to rising international tourist arrivals, increased hotel investments, expanding airline connectivity, and growing confidence in Nepal’s tourism economy.
Although the broader market remains under pressure, analysts say hospitality-related companies continue attracting selective buying interest from investors looking at long-term growth opportunities. The recovery in tourism stocks on Friday suggests investors remain optimistic about the sector’s medium and long-term outlook.
Investors Await Market Direction Next Week
Financial analysts say investors are now closely watching upcoming trading sessions to determine whether the broader market can break its short-term negative trend. While tourism-related stocks showed resilience, continued weakness in the benchmark index indicates that overall investor confidence remains cautious.
Analysts believe future market direction will depend on sectoral performance, liquidity conditions, investor confidence, and broader economic developments affecting Nepal’s capital market. With NEPSE continuing to trade below recent highs and sector-specific volatility increasing, investors are expected to closely monitor next week’s trading for clearer signals about market momentum moving forward.
