KATHMANDU: The Nepal Stock Exchange (NEPSE) recorded a marginal decline on Wednesday, with the benchmark index dropping by 1.94 points compared to the previous day, closing at 2832 points.

Interestingly, before the final 15-minute weighted average price recalculation, the index had gained 2 points, but after adjustments, it ended slightly in the red.

During the trading session, NEPSE surged to an intraday high of 2856 points at 1:46 PM, while the day’s lowest point was recorded at 2828 points at 11:37 AM.

Among the traded companies, 112 stocks saw price increases, while 138 companies declined. Despite a higher number of decliners, the index movement remained narrow due to sectoral performances.

The day was marked by significant investor interest in the microfinance sector, which rose by 1.41%. Market speculation suggests that microfinance institutions might be allowed to distribute dividends exceeding 15% from last fiscal year’s profits following a revision in regulatory limits. This optimism fueled a surge in microfinance stocks.

Among the top gainers, Wean Nepal Laghubitta, Mahuli Laghubitta, and Trade Tower Company hit the upper circuit limit with a 10% price rise. Similarly, Samaj Laghubitta surged by 7.93%, and Swabhiman Laghubitta by 7.83%.

On the downside, Three Star Hydropower declined by 3.78%, followed by Samata Domestic Laghubitta (2.72%) and Unilever Nepal (2.71%).

In terms of transaction volume, Ngadi Group Power and Himalayan Reinsurance topped the charts with turnovers of Rs 294.5 million and Rs 280.2 million, respectively. Other actively traded stocks included Shivam Cement, NRN Infrastructure, and Balephi Hydropower.

Sectoral performance was mixed. Apart from microfinance, the Investment (up 0.49%) and Others (up 0.44%) indices showed gains. However, major sectors closed lower: Banking (down 0.47%), Development Banks (down 0.61%), Finance (down 0.41%), Hotels & Tourism (down 0.05%), Hydropower (down 0.15%), Life Insurance (down 0.45%), Manufacturing & Processing (down 0.10%), Non-Life Insurance (down 0.36%), and Trading (down 0.66%).

Despite the marginal decline in the index, the session reflected sectoral shifts and selective buying, especially in microfinance and reinsurance companies.