The Hotels and Tourism Index on the Nepal Stock Exchange (NEPSE) closed lower on Thursday, recording a marginal decline of 10.17 points (0.13 percent) to settle at 7,398.56, ending the day in negative territory despite the broader market posting overall gains.
The decline in the tourism-related index comes after a strong performance in the previous trading session, where the sector had gained 121.14 points, reflecting short-term profit booking among investors after recent market optimism surrounding tourism and hospitality-related stocks.
Tourism Sector Witnesses Intraday Volatility During Trading Session
According to market data, the Hotels and Tourism Index opened trading at 7,408.75 and witnessed notable fluctuations throughout the day. During intraday trading, the sector touched a high of 7,458.50 before falling sharply to a low of 7,313.01, eventually recovering slightly to close at 7,398.56 by the end of the session.
Market analysts say the slight decline indicates a temporary market correction after consecutive gains in tourism-linked stocks, while investor sentiment toward Nepal’s tourism and hospitality sector remains largely positive due to improving international tourist arrivals and stronger recovery in travel-related businesses.
Overall NEPSE Continues Positive Momentum
While the tourism sector recorded a decline, the broader benchmark index of the Nepal Stock Exchange showed positive movement, gaining 8.78 points (0.33 percent) to close at 2,661.71.
The overall market had also ended positively in the previous trading session, where NEPSE had surged by 44.59 points, indicating continued investor confidence across multiple sectors of the economy.
The benchmark index opened at 2,659.59 and moved within a narrow range during trading, reaching an intraday high of 2,662.01 while touching a low of 2,625.46 before closing higher.
Trading Turnover Crosses Rs 4.11 Billion
Market activity remained relatively active throughout the trading session, with total daily turnover reaching Rs 4.11 Arba, reflecting healthy participation from investors across different sectors listed on the exchange.
A total of 8,964,223 shares were traded during the day involving 359 listed companies through 43,131 individual transactions, highlighting steady market participation and continued liquidity in Nepal’s capital market.
According to the exchange, Nepal’s total market capitalization stood at Rs 45.58 Kharba, while float market capitalization reached Rs 15.38 Kharba, indicating the overall valuation of listed companies remained stable despite sector-specific fluctuations.
Tourism Stocks Under Short-Term Pressure Despite Positive Industry Outlook
Financial analysts believe the slight decline in the Hotels and Tourism Index does not necessarily indicate weakening confidence in Nepal’s tourism sector, particularly at a time when international tourist arrivals continue to show strong year-on-year growth and tourism businesses are gradually recovering.
The tourism sector remains one of the closely watched segments in the stock market as investors continue monitoring broader economic recovery, international travel demand, and the performance of hospitality businesses in the post-pandemic period.
With the overall NEPSE index continuing its positive trajectory, market experts say investor confidence remains stable, although sector-wise corrections and short-term fluctuations are expected as the market adjusts following recent gains.
