KATHMANDU, June 13: Stocks witnessed a steady decline since the opening of Wednesday's trading session. The Nepal Stock Exchange (Nepse) index shed over 8 points, dropping to as low as 1,267 points, in the afternoon. But the benchmark index clawed back some of its losses toward the close to end the day 3.5 points lower at 1,272.48 points.
Despite the bourse taking a breather from its five-day losing streak on Tuesday, weakness remained visible on Wednesday. Barring the initial few minutes, the index traded in red throughout the session. Further, passive trading was witnessed in the exchange with a relatively low turnover of Rs 503 million.
Stocks extend losing run
The broad index's decline was also reflected in performances of most of the major sectors. Mutual Fund and Non-Life Insurance sub-indices fell the most, giving up 1.53 percent and 1.12 percent, respectively. Next, Microfinance and Life Insurance stocks struggled and logged loss of 0.52 percent and 0.44 percent, respectively. Development Bank, Hydropower and Banking sub-indices also edged lower. Meanwhile, Trading sub-index bucked the trend and rallied by over 4.64 percent. Hotels and Manufacturing & Processing segments posted marginal gains.Global IME Bank Ltd Promoter Shares were traded the most on Wednesday with total transaction worth Rs 71 million. Shares of Shivam Cements Ltd also witnessed active participation with turnover of over Rs 42 million. Prabhu Bank Ltd, Nepal Credit and Commerce Bank Ltd, NIC Asia Bank Ltd, Mega Bank Ltd and Nepal Bank Ltd were among other active stocks of the day.In terms of advances, biggest gains came Salt Trading Corporation as its share price rallied to hit the upper circuit of 10 percent. Ganapati Microfinance Bittiya Sanstha Ltd and Civil Laghubitta Bittiya Sanstha Ltd followed suit with gains of 5 percent each. Subsequently, Khanikhola Hydropower Co Ltd, United Modi Hydropower Ltd and Central Finance Co Ltd added 4.23 percent, 3.57 percent and 3.33 percent on their respective share prices.In contrast, Nepal Hydro Developers Ltd continued to slump as its share price tumbled by 7 percent. Share prices of Multipurpose Finance Company Ltd and Karnali Development Bank Ltd also came under considerable pressure and went down by 6.97 percent and 6.45 percent, respectively. Janautthan Samudayic Laghubitta Bikas Bank Ltd, Corporate Development Bank Ltd and Ngadi Group Power Ltd also logged loss of over 6 percent each.
On corporate space, Radhi Bidyut Company Ltd is holding its Annual General Meeting (AGM) on July 14 with book closure date set on June 24. The meeting's agendas include distribution of 5 percent cash dividend and 5 percent bonus shares, among others. Besides, Nepse has set the opening range for transaction of Union Hydropower Ltd' shares at Rs 79.82 to Rs 239.47. The hydropower company had issued 3.53 million units of primary shares to general public in late March.
The index, as per the ARKS technical analysis, formed another bearish candlestick on the daily timeframe as the secondary market extended its downfall. Bears remain notably dominant as the index has made a new low considering past month's movement. Technical indicators also indicate the market is likely to trend downward, at least until the immediate support at 1,250-1,260 points range.
