The Nepal Stock Exchange (NEPSE) ended the trading week on a bearish note, with the benchmark index sliding 49.98 points, or 1.79 percent, to close at 2,738.72. The four-day week, shortened by the International Labour Day holiday on Friday, saw a steady downward trend driven by profit booking and growing uncertainty linked to recent political developments.

Total market capitalisation slipped to Rs 4.67 trillion from Rs 4.75 trillion the previous week, erasing roughly Rs 80 billion in investor wealth across just four sessions. The hydropower sector led the losses, followed by hotels and tourism, and manufacturing.

Market participation also weakened sharply. Total weekly turnover fell to Rs 21.18 billion, a 27.9 percent decline from the Rs 29.38 billion recorded a week earlier. Analysts say the combination of falling prices and lower volume suggests that while sellers stayed active, institutional buyers remained on the sidelines, waiting for clearer signals from upcoming third-quarter earnings.

On the gainers' side, Shikhar Power Development Limited topped the chart with a 5.86 percent rise to Rs 974. Mai Khola Hydropower was the steepest faller, plunging 22.84 percent to close at Rs 559. Reliance Spinning Mills Limited recorded the highest weekly turnover at Rs 1.16 billion despite its share price falling 8.76 percent, while National Hydro Power Company led trading volume with over 2.44 million shares exchanged, indicating sustained retail interest.

The index hit a weekly high of 2,812.29 and a low of 2,708.34, with overall volatility of 103.95 points, up from 86.61 points the previous week. Analysts note that while the broader sentiment remains cautious, the weakening selling pressure could open up a potential entry opportunity for long-term investors once Q3 earnings clarity emerges.