KATHMANDU: On the final trading day of the week, Thursday, the Nepal Stock Exchange (NEPSE) index rose slightly by 1.13 points, closing at 2,545.73, a 0.04% increase. Today, 329 companies were traded 50,621 times, with a total of 7,605,584 shares changing hands, amounting to NPR 3.49 billion.Nepal News
Shares of Mabilung Energy Limited and Shwet Ganga Hydropower Limited hit their positive circuit limits on the trading day, while Nepal Micro Insurance Company Limited recorded the largest decline of the day.Nepal News
The stock market remained stable on Thursday, with the NEPSE index closing at 2,544.91 points. Out of 13 sub-groups, seven advanced; banking, finance, hotel and tourism, hydropower, microfinance, mutual fund and business sub-group indices increased slightly. “Shares of 5 companies traded today at a positive circuit level. Shares of Mabilung Energy, Shweta Ganga Hydropower and Construction, Sagar Distillery, Bungal Hydro and Bandipur Cable Car and Tourism were traded in positive circuit level on the day,” the report noted.Lagani News
Why these hydropower stocks are surging
Hydropower has become one of the most attention-grabbing sectors on NEPSE due to resource potential, policy moves and strong retail interest. As one sector analysis puts it, “Hydropower is often called the future of Nepal’s economy, and investors treat it as one of the hottest sectors in NEPSE.” The same analysis highlights key drivers:
- Abundant resources and export opportunities that attract investor optimism.Nepalytix
- Government encouragement and frequent IPO access that draw retail money into new listings.Nepalytix
- News sensitivity: approvals (PPAs), export deals or listing news can spark rapid rallies; conversely, delays or regulatory changes trigger sell-offs.Nepalytix
Mabilung Energy’s recent listing and public float have also drawn attention: 38,58,240 IPO shares of Mabilung Energy Limited (MABEL) were listed in NEPSE, and the opening range for the first transactions was reported between Rs. 105.90 and Rs. 317.70 — a structure that often fuels speculative interest on listing days.ShareSansar
Market mechanics and what a “positive circuit” means
Individual scrips in NEPSE can hit a daily circuit limit (positive or negative). When an individual stock’s price rises to the daily permitted limit (commonly 10% for individual scrips), it is described as hitting the positive circuit; trading continues but price movement is capped for that day. The index itself has index-based circuit breakers that halt trading when the market moves too rapidly (e.g., 4%, 5%, 6% thresholds trigger timed halts).ShareGyan Nepal
What this signals for renewable investment in Nepal
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Short-term: Retail-driven rallies around IPOs, approvals or listing momentum can drive upper circuits; hydropower remains highly news-sensitive and can lead NEPSE sector rotations.Nepalytix
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Medium/long-term: The sector’s fundamentals — large resource base, export potential and policy focus — offer structural growth opportunities, but risks (project delays, financing constraints, seasonality, regulatory uncertainty) persist and can temper sustainable investor returns.Nepalytix
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Market stability tools: Circuit rules and index halts are designed to provide breathing space for market participants during sharp moves; their activation underlines both market enthusiasm and the need for measured investor response.ShareGyan Nepal
Key takeaways from today’s session
- Mabilung Energy and Shwet Ganga reaching positive circuit reflects strong retail interest around hydropower listings and sector sentiment.Nepal News
- IPO mechanics and news flow can rapidly amplify prices on NEPSE; investors should note the high news-sensitivity of hydropower names.ShareSansar
- Structural opportunities exist but so do material execution and financing risks; discernment and diversification remain important for participants.Nepalytix
Share Your Thoughts
- What impact could the surge in hydropower stocks have on local communities and broader investment flows in Nepal?
- Do you view Mabilung Energy’s listing and Shwet Ganga’s circuit-hit as sustainable sector growth or short-term speculation?
- What policy or market measures would you prioritize to make hydropower investments more attractive and less volatile?
- How should retail investors approach newly listed hydropower IPOs on NEPSE?
- Which lesson from today’s trading should regulators and market participants take forward?