Daily turnover also falls to Rs 4.75 billion

KATHMANDU, Dec 9:  The Nepal Stock Exchange (Nepse) index opened almost 15 points higher but retraced sharply within the first trading hour on Wednesday. Failing to make any notable recovery, stocks continued to struggle in the afternoon. At the close, the benchmark index closed 39.60 points lower at 1,955.75 points.  

Following a massive rally in the month of November, stocks are showing signs of correction in early December trading amidst profit booking. Besides, the selloff in the beginning of the week was also fueled by rumors on NRB reducing limit on loans against shares. However, the regulator is still silent on any such issue and no official remark has been made. With market sliding in the negative territory, turnover also remained subdued. Rs. 4.75 billion worth of securities were traded in the exchange.

All sectors ended the day in red, barring Hydropower index as few energy sector heavyweights continued to see gains. Hydropower index climbed 1.25%. Trading Index was the major laggard as it slumped 4.87%. ‘Others’ sector also suffered decline of 2.76%. Non-Life Insurance, Microfinance, Life Insurance, Manufacturing & Processing and Banking sub-index dropped over 2% each. All other sub-groups closed marginally lower.

Shares of Nepal Reinsurance Company Ltd were traded the most on Wednesday with a total transaction worth Rs. 424 million. Upper Tamakoshi Hydropower Ltd and Arun Kabeli Power Ltd’s shares were also heavily traded with turnovers of Rs. 259 million and Rs. 232 million. Nepal Life Insurance Company Ltd, Rasuwagadhi Hydropower Ltd, Nepal Bank Ltd and Nepal Telecom Ltd were the other active stocks.

Narayani Development Bank Ltd and Sanjen Jalvidhyut Company Ltd were the biggest gainers of the day. Both scrip remained locked in the upper circuit of 10%. Rasuwagadhi Hydropower Company Ltd, Nepal Lube Oil Ltd and Upper Tamakoshi Hydropower Ltd posted advances of 7.32%, 4.62% and 4.56%. Radhi Bidyut Company Ltd, Unilever Nepal Ltd and Liberty Energy Company Ltd rose over 3% each.

Arun Valley Hydropower Development Co. Ltd and Himalaya Urja Bikas Company Ltd, on the other hand, saw notable losses. Both scrips fell over 5%. Salt Trading Corporation, Kalika Power Company Ltd and Bishal Bazar Company Ltd registered declines of 4.91%, 4.85% and 4.67%. Suryodaya Laghubitta Bittiya Sanstha Ltd, Mithila Laghubitta Bittiya Sanstha Ltd and Prabhu Bank Ltd closed more than 4% lower.

The equity index, as per the ARKS technical analysis, formed a bearish candlestick on the daily timeframe suggesting sellers dominating the market in the recent sessions. After hitting 2,100 points on Thursday’s trading, the index has stretched its correction. Since, the uptrend is still in action, a consolidation above 1,900 points can provide opportunities to accumulate stocks. However, a breach of 1,900 points level to the downside with notable volume can suggest the possibility of further dip in the equity market.

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)

www.arkscapitaladvisors.com

 
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