Kathmandu-The Nepal Stock Exchange (NEPSE) ended the week on a negative note, with the benchmark index declining by 8.30 points on Friday, the fifth and final trading day, to close at 2,653.40 points. In the previous session, the market had gained 8.78 points.

Overall, the market experienced significant fluctuations throughout the week. NEPSE fell by 16.54 points on Monday, followed by another decline of 24.63 points on Tuesday. The market staged a strong recovery on Wednesday, surging 44.59 points, and extended gains with an 8.78-point increase on Thursday.

However, Friday's decline erased part of those gains, leaving the benchmark index 2.94 points lower for the week.

Market breadth remained negative on Friday, with the share prices of 103 companies advancing while 160 companies declined. A total of 8.58 million shares of 345 listed companies changed hands through 46,234 transactions, generating a turnover of Rs. 4.41 billion, up from Rs. 4.11 billion recorded in the previous session.

Among individual stocks, Snow Rivers Limited, Kalanga Hydro Limited, Sanigad Hydro Limited, and Nepal Finance Limited hit the positive circuit limit. On the downside, Upper Lohore Khola Hydropower Company Limited recorded the steepest fall, dropping 13.65 percent.

In terms of turnover, 4 percent Agricultural Bonds topped the list with transactions worth approximately Rs. 430 million.

Sector-wise, five of the 13 sub-indices closed higher, while eight ended in the red. The Finance sub-index posted the highest gain of 1.06 percent, whereas the Banking sub-index recorded the largest decline, falling 0.96 percent.

Despite a midweek rebound, the market has continued to struggle in recent weeks. Although the Balendra Shah-led government is approaching its first 100 days in office, the capital market has yet to witness the momentum many investors had anticipated.

Investor expectations had risen following the appointment of experienced economists to key economic institutions, including Finance Minister Dr. Swarnim Wagle, National Planning Commission Vice Chairman Dr. Gunakar Bhatta, Nepal Rastra Bank Governor Dr. Bishwa Poudel, and Nepal Securities Board Chairman Dr. Gopal Bhatta. Market participants expected clearer economic policies and stronger support for the capital market. However, concerns over fiscal tightening have dampened investor sentiment.

The market continues to face pressure from a slowing economy, subdued private sector investment, and expectations of increased IPO supply. Uncertainty surrounding the proposed bill on banks and financial institutions, along with policy debates on separating bankers from business ownership, has further weakened investor confidence and limited fresh investment.

Although investors remain hopeful that expert leadership will deliver meaningful capital market reforms and investment-friendly policies, those expectations have yet to translate into tangible improvements in market performance.