KATHMANDU, July 29: The stock market opened above the 3100 mark in the pre-opening session on Thursday. However, the market pulled back immediately to trade in the red zone. Thereafter, the benchmark index managed to recoup its earlier losses within the first hours of trading. But the market continued to trade in the negative territory for the most of the session. At the end, Nepse was down by 15.13 points at 3079.82.

The equity market lost some steam in Thursday’s trading after registering two straight sessions with notable gains. Similarly, turnover also dipped slightly compared to the preceding trading day and recorded the turnover over Rs. 10.90 billion.

Hotel and Tourism and Development Bank index rose by 1.17% and 1.1% respectively. On the other hand, Finance and Investment segments also came under pressure losing 1.96% and 1.91% on the day. Banking, Trading, Hydropower, Non-Life Insurance, Manufacturing & Processing, Others, Life Insurance and Mutual Fund sectors closed in negative note with a slight decrement.

Shares of Goodwill Finance Company Ltd were traded the most with a turnover of over Rs.339 million.  Himalayan Distillery Ltd, United Modi Hydropower Ltd, Himalayan General Insurance Ltd and Ridi Hydropower Development Company posted a transaction of Rs. 294 million, Rs.254 million, Rs.247 million and Rs.  224 million respectively. National Hydro Power Company Ltd, API Power Company Ltd, Ngadi Group Power Company Ltd and Sanima Mai Hydropower Company Ltd were the other active stocks for the day.

Ridi Hydropower Development Company Ltd and Jeevan Bikas Laghubitta Bittiya Sanstha Ltd were the major gaining scrip with gain of 9.95% and 8.22% correspondingly. Saptakoshi Development Bank Ltd and United Idi Mardi RB Hydropower Ltd surged above 7% each and it was followed by Chandragiri Hills Ltd which rose 6.05%. Sindhu Bikas Bank Ltd, Barun Hydropower Company Ltd, Green Development Bank td, Lumbini Bikas Bank Ltd and Nepal Hydro Developers Ltd were the other major advances on the day.

Goodwill Finance Ltd, Mountain Hydro Nepal Ltd and Janaki Finance Ltd were the losing shares and their prices fell by 7.33%, 6.17% and 5.50% respectively. Joshi Hydropower Development Company Ltd, Shree Investment Finance Company Ltd, Laxmi Unnati Kosh, Central Finance Ltd, Hydroelectricity Investment and Development Company Ltd and Swabhimaan Laghubitta Bittiya Sanstha Ltd dropped over 3% apiece.

As per the ARKS technical analysis, the index formed a small bearish candlestick on the day reflecting seller’s dominance after opening above 3100 level. Similarly, heavy profit booking on some of the sectors shows possibility of further correction. Hence, a watchful approach must be taken with 3,100 level acting as an immediate resistance. A correction can see the index test support at 3,000 line.

This column is produced by ARKS Capital Advisors Ltd.

(Views expressed in the article are those of the producer and do not necessarily reflect those of this publication)

 
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