Kathmandu, Aug. 22 -- The Nepal Stock Exchange (NEPSE) index fell 25.11 points, or 0.95 percent, during the trading week from August 17 to 21, while trading activity increased sharply as investors rotated their holdings and booked profits.

The benchmark index closed at 2,618.72 points on Friday, down from 2,643.83 points a week earlier. Trading activity increased substantially, driven largely by heavy turnover in hydropower and manufacturing stocks.

The decline also reduced investors' paper wealth. Total market capitalisation fell to Rs4.504 trillion at the end of the week from Rs4.547 trillion a week earlier, wiping out about Rs43 billion in market value.

The broader market also weakened. The Sensitive Index fell 3.37 points, or 0.73 ...