Eastern Nepal Unrest Halts NEPSE Rally as Investor Sentiment Weakens
Communal tensions in eastern Nepal have weighed on investor confidence, triggering sustained selling pressure in the stock market despite the absence of major economic or policy-related concerns.
Nepal's stock market has come under pressure as communal tensions in eastern Nepal dampened investor confidence and triggered sustained selling. The unrest, which began in Dewanganj of Sunsari and spread to other parts of Koshi Province, has interrupted the NEPSE Index's recent upward momentum. According to Sagar Dhakal, President of the Stock Brokers Association of Nepal (SBAN), the market's recent decline is largely driven by the ongoing social unrest, with no major economic or policy-related factors contributing to the fall. The NEPSE Index has dropped 62.02 points over the past four trading sessions, including a 16.30-point decline on Thursday, as investors adopt a cautious wait-and-watch approach.