SONA Plummets 10% on First Trading Day: Market Faces Sharp Decline Amid Supply-Demand Imbalance

Sonapur Minerals and Oil Limited (SONA), which debuted with much anticipation and had its IPO priced at Rs. 237.58 per share, witnessed a troublesome start, plunging by Rs. 35, hitting a negative circuit of 10% on its first day of trading. The company has a total of 30,750,500 unit shares listed in NEPSE. From its opening range of Rs. 142.01 to Rs. 426.03, the stock commenced at Rs. 350 but closed at a worrisome Rs. 315, indicating a challenging day for the new entrant.

The scenario appeared to be a reflection of an imbalance in the market, evident in the disparity between the number of sellers and buyers. The prevailing downtrend could be attributed to an excess of supply over demand, leading to a stark decrease in the stock’s value.

Notably, the downward trend was not limited to SONA alone. Manufacturing giants like GCIL and SHIVM were also affected, with their current trading prices at Rs. 396 and Rs. 500 respectively, signifying a broader market concern beyond a single company.

The unsettling performance of these key companies contributed to a sharp drop in the NEPSE Index. Before the festive break, the market had seen a gain of 1.56%. However, the first trading day after the break took a surprising turn, experiencing a double-digit loss of 28.78 points, translating to a significant 1.51% downturn in the market, leaving investors and analysts on edge.

The disparity in supply and demand, along with a general market sentiment downturn, prompted concerns among investors about the stability and trajectory of the Nepalese stock market as it navigates these turbulent times.