Beed’s take on the market : May 15 to June 10, 2026

The Nepal Stock Exchange (NEPSE) index increased marginally by 4.23 points (0.15%) to close at 2,736.17 points during the period from May 15 to June 10. The market started with an uptrend, reaching an intraday high of 2,799.15 points on June 3. However, it could not sustain this momentum and declined to an intraday low of 2,701.86 points on June 9, before closing at 2,736.17 points on June 10. Market turnover decreased by 37.45% compared to the previous review period, which had recorded a 52.91% decline. The overall sideways trend, coupled with a decrease in turnover, signals indecisiveness among investors. (See Figure 1)

During the review period, seven sub-indices recorded gains while four declined. Among the gainers, Finance, Non-Life Insurance and Others sub-indices posted the strongest performance, while the Trading sub-index recorded the steepest fall, followed by the Manufacturing and Processing, and Hotels and Tourism sub-indices.

The Finance sub-index recorded the highest gain of 7.57% driven by sharp increase in the share prices of Central Finance (+Rs 162.0), Best Finance Company (+Rs 74.9) and Nepal Finance (+Rs 66.5). The Non-Life Insurance sub-index gained 5.19% with increase in the share prices of NLG Insurance Company (+Rs 69), Nepal Micro Insurance Company (+Rs 52.4) and Nepal Insurance (+Rs 52.2). The Others sub-index rose by 3.89%, supported by strong gains in Nepal Reinsurance Company (+Rs 171), Himalayan Reinsurance (+Rs 13) and Trade Tower (+Rs 12). The Life Insurance sub-index gained 0.74% led by gains in Crest Micro Life Insurance (+Rs 142.1), Guardian Micro Life Insurance (+Rs 33.2) and Sanima Reliance Life Insurance (+Rs 10.6). 

The Development Banks sub-index rose by 0.67% underpinned by gains in Saptakoshi Development Bank (+Rs 236), Sindhu Bikash Bank (+Rs 49.9) and Green Development Bank (+Rs 38.3). The Hydropower sub-index edged up by 0.25% with gains led by newly listed company Kalinchock Hydropower (+Rs 1,152), Appolo Hydropower (+Rs 344.6) and Bungal Hydro (+Rs 143.3). The Commercial Banks sub-index inched up marginally by 0.04% with gains in Siddhartha Bank (+Rs 9.5), Nabil Bank (+Rs 9) and Standard Chartered Bank (+Rs 9).

Turning to the decliners, Trading sub-index recorded the steepest decline of 9.12% with sharp losses in Salt Trading Corporation (-Rs 564.0) and Bishal Bazar Company (-Rs 480). The Manufacturing and Processing sub-index declined by 1.84% weighed down by fall in Bottlers Nepal Terai (-Rs 448.9), SY Panel Nepal (-Rs 125) and Reliance Spinning Mills (-Rs 122). The Hotels and Tourism sub-index recorded a fall of 0.52% dragged down by Hotel Forest Inn (-Rs 105.1) and Chandragiri Hills (-Rs 16). The Microfinance sub-index edged down by 0.14% with decline in Aatmanirbhar Laghubitta Bittiya Sanstha (-Rs 145.1), Swastik Laghubitta Bittiya Sanstha (-Rs 65.1) and Unique Nepal Laghubitta Bittiya Sanstha (-Rs 57). (See Table 1)

News and Highlights 

On May 29, the Finance Mminister unveiled the budget for FY 2026/27 outlining several reforms for Nepal’s capital market. 

Most notably, capital gains tax (CGT) on listed securities has been made a final tax. Under this provision, individual investors will no longer face additional personal tax liabilities or higher tax bracket adjustments on market profits. At the same time, CGT rates have been increased. Short-term traders, those holding shares for one year or less, will now pay 10% CGT up from 7.5%. Similarly, long-term investors holding securities for more than a year will face 7.5%, increased from the previous 5%.

On the structural front, the government has pledged legal amendments to allow NRNs to enter the secondary securities market, addressing investment approvals, profit repatriation and capital gains procedures. In addition, the budget outlines plans for the gradual introduction of advanced trading instruments on Nepal Stock Exchange (NEPSE), including intraday trading, short selling and derivatives. 

Similarly, the selection committee responsible to fill in the vacant seat for the chairperson of Securities Board of Nepal (SEBON) published a shortlist of four candidates for the top regulatory position. The former chairman had resigned from his post on April 17, 2026 after leading the board for over 16 months, stating that he stepped down to support the government. 

Furthermore, SEBON added six companies to the IPO pipeline. Raghuganga Hydropower plans to raise Rs 1.5 billion with NIC Asia Capital as issue manager. Super Hewa Power Company seeks to raise Rs 192.5 million and Annapurna Machha Dana Udhyog aims to raise Rs 100.95 million, both with Laxmi Sunrise Capital as issue manager. Premier Distillery plans to raise Rs 225 million with Siddhartha Capital as issue manager, and Rajesh Metal Crafts aims to raise Rs 600 million with Nabil Investment Banking as issue manager. Yuwarani Agro Industries plans to raise Rs 165 million with Prabhu Capital as issue manager.

Outlook 

The FY 2026/27 budget offers partial relief through reform commitments around NRN access and long-awaited trading instruments. However, higher CGT rates may limit trading volumes and retail participation. The absence of new SEBON leadership further sustains uncertainty. With investor indecisiveness reflected in sideways NEPSE movement and declining turnover, a meaningful recovery remains contingent on the concrete implementation of the government’s commitments and renewed regulatory confidence. 

This is an analysis from beed Management Pvt Ltd. No expressed or implied warranty is made for the usefulness or completeness of this information, and no liability will be accepted for the consequences of actions taken based on this analysis.