Kathmandu, May 30 -- The Nepal Stock Exchange (NEPSE) index extended its gains during a holiday-shortened trading week, rising 23.61 points, or 0.86 percent, to close at 2,782.10.

After the market closed for the week, the government unveiled its budget for fiscal year 2026-27, including several measures directly affecting the capital market. The decision to classify capital gains tax (CGT) on listed securities as a final tax has drawn mixed reactions from market participants. Some welcomed the provision for bringing policy clarity, while others have criticised the accompanying tax hikes.

The Finance Bill, 2083, increased the CGT rate for short-term traders holding shares for up to one year to 10 percent from 7.5 percent. Long-term inves...