Banking Stocks Drive NEPSE Rally Amid Record Turnover
Commercial banks dominated Friday's trading session, propelling the NEPSE index higher as total turnover surged to NRs 6.74 billion, driven by heavy participation in major banking stocks.
The Nepalese stock market closed Friday with a significant gain, adding 22.85 points to reach 2,647.22. This rise was underpinned by a sharp increase in trading volume, with total turnover climbing to NRs 6.74 billion from NRs 5.49 billion the previous day. Approximately 21.27 million shares changed hands across 345 listed securities, indicating heightened investor activity.
According to GN stocks/banks, commercial banks were the primary engine of this market movement, with four banks occupying the top five spots for trading volume. Kumari Bank led the session with NRs 321.38 million in turnover, followed by Laxmi Sunrise Bank at NRs 271.6 million and Global IME Bank at NRs 232 million. Siddhartha Bank also secured a place in the top five most-traded companies, reflecting strong demand for the sector.
Banking Sector Outperforms Peers
The banking sub-index recorded the largest sectoral gain, rising 1.59% for the day. Life insurance followed with a 1.52% increase, while hydropower, microfinance, and development banks also posted positive results. In contrast, the finance and 'others' sub-indices saw marginal declines, highlighting the concentrated nature of the day's rally in financial and industrial sectors.
Market breadth remained positive, with 196 companies closing higher compared to 74 that fell and nine remaining unchanged. This distribution suggests broad-based participation rather than a narrow rally driven solely by a few large-cap stocks, although the banking sector's dominance in turnover figures remains a key characteristic of the session.
Individual Stock Performance Details
Among individual equities, Snow Rivers posted the largest percentage gain, surging 13.66% to close at NRs 1,057 per share. Infinity Laghubitta also performed strongly with a 9.81% increase. Other notable gainers included Mailung Khola Hydropower, Yambaling Hydropower, and Bottlers Nepal (Terai), indicating that while banks led volume, gains were distributed across hydropower and microfinance sectors as well.
On the downside, Hathway Investment suffered the steepest loss, dropping 15% to NRs 499.80 and hitting the negative circuit limit. Dhaulagiri Laghubitta and Matrubhumi Laghubitta also recorded declines. The trading pattern confirms that investor appetite remained focused on commercial bank shares, driving both the index rise and the overall turnover increase.
Trading Volume And Market Activity
The 22.8% jump in daily turnover to NRs 6.74 billion marks a notable shift in liquidity compared to the previous session. This increase in financial activity coincided with the 0.87% rise in the NEPSE index, suggesting that the price gains were supported by genuine buying pressure rather than low-volume drift. The concentration of this volume in commercial bank stocks underscores the sector's current role as the primary driver of market direction.
