Flood sends hydropower shares tumbling, but damage is uneven
Summary
The Bhotekoshi flood has knocked hydropower shares and insurance stocks in Nepal, but the damage is concentrated in only a handful of projects. Investors are still waiting for clearer information on physical losses, repair costs and insurance payouts before pricing the full impact.
Key Points
- Flooding along the Bhotekoshi and Trishuli rivers damaged roads, bridges and several hydropower projects in Rasuwa, Nuwakot and Dhading.
- Hydropower shares fell sharply on NEPSE, but the decline spread beyond directly affected companies as investors reacted to uncertainty.
- Only around half a dozen listed hydropower projects appear to have suffered direct physical damage, while insurers and reinsurers also face possible claims.
- Market participants say the long-term impact will depend on the extent of damage, reconstruction costs, restoration time and insurance coverage.
