Nepse benchmark index down 5.75 points 
KATHMANDU, Dec 15: After opening Tuesday’s session firmly higher and reaching as high as 2,100 point’s mark, the Nepal Stock Exchange (Nepse) index witnessed a pullback in the morning. The benchmark hovered in positive territory in the first half of the session, but further selling pressure saw the index close with a loss of 5.75 points at 2,061.42 points. 
After a three-day rally, the equity market lost some steam on profit booking. Hence, buying pressure remained slightly subdued. With index trading close to all time high, indecision was also witnessed as investors refrained from taking any major positions on the either side. Turnover also dropped on the day. Rs 6 billion worth of securities were traded. 
Most of the sectors observed a correction on the day. Trading sub-index pulled back 2.59% after previous day’s surge. Manufacturing & Processing segment also suffered a loss of over 2%. Development Bank, ‘Others’, Hydropower and Hotels sub-indices closed over 1% lower. Non-Life Insurance, Finance and Mutual Fund sub-indices also ended marginally in red. Meanwhile, strength was seen in Microfinance stocks as the sub-index jumped 1.86%. Life Insurance and Banking indices eked out modest gains. 
Shares of Nepal Life Insurance Company Ltd were traded the most with turnover of Rs 524 million. Nepal Reinsurance Company Ltd, subsequently, posted a turnover of Rs 361 million. Nepal Bank Ltd, National Life Insurance Company Ltd, Nabil Bank Ltd and NIC Asia Bank Ltd were the other active stocks with transactions of around Rs 20 million apiece. 
Microfinance companies led the list of advances. Unnati Sahakarya Laghubitta Bittiya Sanstha Ltd, Gurans Laghubitta Bittiya Sanstha Ltd, Mahuli Samudayik Laghubitta Bittiya Sanstha Ltd and Global IME Laghubitta Bittiya Sanstha Ltd shot up 10% apiece. Narayani Development Bank Ltd and National Microfinance Bittiya Sanstha Ltd also posted gains of over 9%. Suryodaya Laghubitta Bittiya Sanstha Ltd, Nepal Investment Bank Ltd and Forward Community Laghubitta Bittiya Sanstha Ltd were the other major gainers. 
On the other hand, Multipurpose Finance Company Ltd and Sindhu Bikash Bank Ltd were the biggest losing scrips of the day as both tumbled more than 4%. Sunrise First Mutual Fund, Nepal Hydro Developers Ltd and Shikhar Insurance Company Ltd posted losses of 3.9%, 3.8% and 3.54%. Dibyashwori Hydropower Ltd, Laxmi Bank Ltd and Shivam Cements also suffered losses of over 3% each. 
On the technical front, the index formed a small bearish candlestick as the rally lost some steam. The index also faced resistance at 2,070 points to 2,100 points zone making some consolidation or correction likely for the short term. However, given the market holds ground above 1,940 points mark, the uptrend will still be intact for the short term. Further, a breach of 2,100 point’s mark will point towards extension of the long-term upward move. 
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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