Kathmandu, July 2: The Nepal Stock Exchange (NEPSE) extended its recovery for a second consecutive trading session on Thursday, rising 8.78 points (0.33 percent) to close at 2,661.71.

The gain follows Wednesday's sharp rebound of 44.59 points (1.70 percent) after several sessions of decline.

The Sensitive Index, which tracks Class 'A' companies, advanced 0.85 percent, while the Float Index gained 0.54 percent.

Trading activity also improved, with daily turnover increasing to Rs 4.12 billion, up from Rs 3.86 billion on Wednesday. A total of 8.96 million shares of 359 listed companies were traded through 43,131 transactions.

Investor sentiment remained mixed, with 108 stocks advancing, 152 declining, and 13 remaining unchanged.

Among individual stocks, Upper Lohore Khola Hydropower Company Limited (ULHC) and Kalanga Hydro Limited (KAHL) hit the 15 percent upper circuit during the day's trading.