The stock market continued its downward trend on Monday, the second trading day of the week, as the NEPSE index plunged below the 2,700 mark for the first time in two months.

The NEPSE index dropped by 35.99 points to close at 2,672.25. Previously, on July 8 (Ashar 24), the index had closed at 2,683.86, marking the last time it was below the 2,700 level.

Impact of Gen Z Protests

Adding to the ongoing decline, today’s Gen Z protests put further pressure on the market. Reports of casualties during the demonstrations have created uncertainty among investors. Analysts note that concerns about how the protests will unfold in the coming days have negatively affected investor sentiment.

Trading Volume Increases Despite Decline

While the index fell, trading volume actually increased. On Sunday, the market recorded transactions worth NPR 4.40 billion. On Monday, turnover rose to NPR 5.23 billion with 59,704 trades involving 117.17 million shares of 320 listed companies.

Key Stock Movements

Him Star Energy’s stock once again hit the positive circuit level, gaining NPR 39.10 to close at NPR 430.50.

In contrast, Barahi Hydropower was the biggest loser of the day, with its share price dropping by 5.28 percent. Other stocks showed gains or losses of less than 5 percent.

Top Companies by Turnover

By transaction value, Nepal Reinsurance Company led the market with over NPR 3.06 billion in turnover. Union Hydropower followed with transactions exceeding NPR 2.4 billion, while Universal Power recorded more than NPR 2.3 billion in trading.

All Sub-Indices Decline

All 13 sectoral sub-indices closed lower. The trade sub-index was the hardest hit, down 3.31 percent. Banking, development banks, hotels and tourism, hydropower, investment, manufacturing & processing, microfinance, non-life insurance, and others also posted declines of more than 1 percent.

With political unrest and uncertainty stemming from the protests, the stock market’s continuous decline has further weakened investor confidence.