Kathmandu, Oct. 10 -- The Nepal Stock Exchange (Nepse) showed pockets of strength last week, but falling turnover and widespread sectoral losses suggest investors remain cautious about a broader recovery.

The benchmark index fell 7.35 points, or 0.28 percent, to 2,591.80 in the five-session week ending October 9. Market capitalisation declined by around Rs20 billion to Rs4.45 trillion, while turnover fell 18.1 percent to Rs18.44 billion from Rs22.51 billion the previous week. Average daily turnover dropped to Rs3.69 billion from around Rs4.5 billion.

Investor and market analyst Subas Chandra Dhungana attributed the slowdown partly to reduced participation during Dashain, quarterly margin-loan interest payments due in mid-October and mut...