Er.energyNP@Gmail.com

The Nepal Stock Exchange (NEPSE) fell sharply on Monday, the first trading day of the week, with the market index dropping 43.89 points to close at 2,513.42 points.

Market turnover also declined slightly to Rs 3.64 billion from Rs 3.78 billion in the previous session. The market remained in negative territory throughout the trading day. Of the 278 companies traded, prices of 21 companies increased, 253 declined, and four remained unchanged.

The three sectors most affected by last Wednesday’s severe floods continued to face heavy selling pressure. The non-life insurance sector recorded the steepest decline, falling 5.03 percent, followed by the other sector at 3.30 percent and hydropower at 2.94 percent.

The flood damage has significantly affected more than a dozen hydropower projects. Non-life insurers are also expected to face substantial claims related to damaged vehicles, homes, and hydropower projects. The ‘others’ sector includes Nepal Reinsurance Company and Himalayan Reinsurance Company, which could also face increased claims exposure.

Most other sectors also ended lower. Banking fell 1.00 percent, development banks 0.96 percent, finance 1.41 percent, hotels and tourism 2.44 percent, investment 1.19 percent, life insurance 1.97 percent, microfinance 1.14 percent, and trading 1.11 percent.

In contrast, the manufacturing and processing sector gained 0.70 percent. Cement companies performed positively amid expectations of higher cement demand during post-flood reconstruction.

Upkar Laghubitta recorded the biggest gain, rising 13.16 percent. Ghorahi Cement gained 7.57 percent, Palpa Cement 4.03 percent, and SY Panel 3.91 percent.

On the losing side, Mailung Khola Hydropower fell 14.98 percent, Rasuwagadhi Hydropower 11.76 percent, Chilime Hydropower 10.49 percent, and Mandu Hydropower 9.30 percent.

In terms of trading volume, Shivam Cement led the market, followed by Sarbottam Paints, Reliance Spinning Mills, Chilime Hydropower, and SY Panel.