The anticipated market recovery following Nepal's recent political transition has failed to materialize, with the Nepal Stock Exchange (Nepse) benchmark index shedding more than 380 points since Balendra Shah assumed the role of prime minister.
The decline has erased nearly Rs600 billion in total market capitalization, signaling that investor sentiment remains deeply cautious despite the change in government leadership.
The current downturn follows a volatile period for Nepse, which saw the index fall nearly 2% last week alone, wiping out approximately Rs90 billion in value.
This latest data point underscores a persistent bearish trend in Kathmandu's equity markets.
The broad-based sell-off reflects a disconnect between political expectations and market reality, as traders continue to discount the potential for immediate economic stabilization or policy reforms under the new administration.
The current downturn follows a volatile period for Nepse, which saw the index fall nearly 2% last week alone, wiping out approximately Rs90 billion in value.
That weekly decline was universal, with all 13 sectoral indices posting losses, indicating a lack of safe havens within the domestic market.