Kathmandu-The stock market surged on the first trading day of this week, gaining 56.56 points overall last week. Investors appear increasingly confident in the capital market as a new government is set to take shape.

On Sunday, the Nepal  Stock Exchange (NEPSE) market jumped by 54.51 points to reach 2,931.56, with a total turnover of Rs 23.59 billion, the highest since July 27. The sensitive index rose by 2.24 points, the float index by 2.04 points, and the sensitive float index by 2.26 points.

Shares of several companies hit the positive circuit limit, including Corporate Development Bank, Salpa Bikas Bank, Reliance Spinning Mills, Solu Hydropower, Abhiyan Laghubitta, NIC Asia Laghubitta, and Bhujung Hydropower Company.

In terms of transaction value, Kumari Bank recorded trades worth Rs 859.6 million, while National Hydropower saw transactions worth Rs 778.7 million.

Out of 13 sub-groups, indices of 12 increased, while one declined. The microfinance subgroup recorded the highest gain of 4.21 percent.

Last week, the market had inched up by 4.45 points on Sunday, dropped by 26.07 points on Monday, rose by 13.51 points on Tuesday, remained closed on Wednesday, and then climbed by 64.67 points on Thursday to reach 2,877.67.

After a period of stagnation, the market gained momentum following the election results and has now resumed its upward trend.

Investors are optimistic about the mandate given to new political forces, which they believe will improve the economic structure and governance.

The market’s all-time high of 3,199.03, recorded on September 18, 2021, remains a target. It regained momentum toward that level after reaching 3,000.81 on August 16 last year and 3,002.08 again on August 29.

The market crossed the psychological threshold of 2,900 again, and investors expect it to move toward new highs. While the short-term outlook remains uncertain, analysts say most indicators point toward continued growth.