KATHMANDU: Sunday's trading lacked any charm as the Nepal Stock Exchange (Nepse) index wavered along the opening level initially and traded slightly in the red in the latter trading hours. The benchmark index dropped around 4 points at mid-session and flattened thereafter. The index closed the day at 1,133.71 points – down 4.03 points against the session earlier.
Consequently, the bourse began week on a feeble footing. But the losses remain modest as the bourse has refused to register any major movements in the month of October.
Range bound trading has continued to be the theme of the Nepali stock market in the current scenario. However, with the end of the first quarter, earnings data might be crucial in determining the possible scenario in the secondary market. Another bland trading session on Sunday saw a total turnover of only Rs 113 million. Trading activity took a major hit, mainly, as Nepse suspended trading of over 80 scrips due to non-payment of renewal fee by respective companies.
All of the sectors saw marginal declines mirroring the broader market. Mutual Fund units suffered the most as the group's sub-index tanked over 3%. Manufacturing & Processing sub-index dropped 0.55% followed by Life Insurance and 'Others' segment which fell at least 0.4%. All other sectors turned slightly red. Heavyweight Banking sector's sub-index, meanwhile, closed 0.38% lower.
Leading the list of actives were shares of Prabhu Bank Ltd. Rs 11 million worth of the commercial bank's scrips changed hands. Next, Everest Bank Ltd and Nepal Bank Ltd saw turnovers of Rs 7 million and Rs 5 million, respectively. Nepal Life Insurance Company Ltd, NIC Asia Bank Ltd and Agriculture Development Bank Ltd were among other top turnover stocks, each registering turnovers of over Rs 4 million.
Among advances, NIBL Pragati Fund units climbed 3.84%. Sanima Mai Hydropower Ltd also saw some strength as the energy sector company surged 3.21%.
Correspondingly, Sagarmatha Insurance Company Ltd and NIBL Samriddhi Fund 1 registered gains of 2.71% and 2%. Other top advances of the day were Sabaiko Laghubitta Bittiya Sanstha Ltd, NIC Asia Growth Fund and NMB Hybrid Fund L-1.
Conversely, biggest losses came from Synergy Power Development Ltd. Its share price tanked 5.33%. City Express Finance Co Ltd's shares also struggled giving up more than 4% on the day. Gurans Laghubitta Bittiya Sanstha Ltd, Ankhu Khola Jalvidhyut Company Ltd and Prime Life Insurance Company Ltd, subsequently, posted losses of over 3% each.
Technical analysis by ARKS shows a small bearish candlestick formation on Sunday reflecting minor selling pressure in the day. However, on a slightly longer timeframe, the index has continued to move sideways where 1,120 points still acts as a major support, while resistance rests at 1,150 points.
Moreover, technical indicators are mixed suggesting the market lacking conviction. Hence, investors are suggested to maintain watchful stance unless a clear signal of a reversal is visible.
This column is produced by ARKS Capital Advisors Ltd
(Views expressed are those of the producer and do not necessarily reflect those of this publication)