Nepal’s Stock Market Journey: From Post-Election Rally to Falling Confidence
Summary
Nepal’s stock market surged after the general election before reversing sharply as investor confidence weakened, trading volumes fell, and investigations and arrests rattled the market. A ransomware attack also disrupted NEPSE trading, while the government proposed major capital market reforms to restore liquidity and trust.
Key Points
- NEPSE jumped 6 percent after the election on expectations of political stability and economic reform, but the rally quickly faded.
- Market capitalization, trading volumes, and liquidity all fell sharply over the following months as investors turned cautious.
- Arrests and investigations involving political leaders and business figures further damaged confidence in the capital market.
- A ransomware cyberattack briefly shut down NEPSE trading, prompting calls for stronger cybersecurity and infrastructure reforms.
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