The Nepal Stock Exchange (NEPSE) index posted a modest gain during the trading week of May 4 to May 8, although market participation weakened sharply despite an additional trading day compared to the previous week.

The benchmark index closed at 2,745.65 points, up 6.93 points or 0.25 percent from last week’s close of 2,738.72. The Sensitive Index, which tracks the performance of Class ‘A’ companies, also rose by 0.62 percent to close at 467.33 points.

Investor wealth increased as total market capitalisation climbed to Rs4.682 trillion from Rs4.671 trillion a week earlier, adding around Rs11 billion in market value over the five-day trading period.

However, turnover volume declined sharply. Total weekly turnover stood at Rs17.121 billion, down from Rs21.183 billion in the previous week, even though the market remained open for the full five trading days this week, compared to four days last week.

Average daily turnover dropped to Rs3.424 billion from Rs5.295 billion in the previous week. Overall turnover declined by Rs4.062 billion, while average daily participation fell by around Rs1.871 billion.

Among sectoral indices, the “others” sub-index led gains with a 1.60 percent rise, followed by mutual funds at 1.02 percent and finance at 0.88 percent.

Development banks emerged as the worst-performing sector, falling by 1.50 percent, while manufacturing and processing declined by 1.19 percent.

Market analysts said these sectors corrected after recent gains as investors booked profits. Among individual stocks, Jhapa Energy Limited was the week’s top gainer, surging 17.65 percent to close at Rs1,840.

Corporate Development Bank recorded a sharp decline, dropping 15.17 percent to close at Rs 2,035.90. Solu Hydropower Limited topped the turnover chart with transactions worth Rs751.5 million, closing at Rs719.

National Hydro Power Company was the most actively traded stock by volume, with 2.276 million shares changing hands. Its shares closed at Rs283.10.

Market analyst Manish Aryal said investors remained in a wait-and-see mode ahead of the upcoming budget announcement, contributing to lower trading activity.

“The market returned after touching around 2,685 points during intraday trading on Tuesday, within the psychological support zone of 2,680 to 2,700 points, which is a positive sign,” Aryal said. He said the limited decline in the market indicated that selling pressure was gradually easing.

“With the budget announcement approaching, the market could witness an upward swing if trading volume increases next week,” he said.