KATHMANDU, June 11: Weakness persisted in the local bourse as the Nepal Stock Exchange (Nepse) index stretched its losing streak to five consecutive sessions. Despite trading in the green in the initial trading hour, constant selling pressure in the afternoon saw the Nepse index close with a loss of 8.78 points. The index settled at 1,275.82 points on Monday.

Lack of major developments towards the end of fiscal year might be one of the reasons for the lackluster sessions witnessed in the bourse of late. Investors have also refrained from taking any major long positions. Hence, the market has been witnessing a steady decline since the past week. Turnover also remained relatively subdued. The exchange saw a total turnover of Rs 610 million on the day.

Most of the sectors gave ground following the drop in the broader market. Only Mutual Fund, Manufacturing & Processing and Development Bank sub-indices closed marginally higher. Biggest losses came from Non-Life Insurance and Hotels scrips with the respective sub-indices posting losses of 2.21 percent and 1.6 percent, respectively. Hydropower and Finance sub-indices followed suit with losses of over 1 percent each. Besides, all other traded sectors registered modest losses.

Shares of NIC Asia Bank Ltd were the most actively traded scrip in the session with turnover of over Rs 41 million. Shivam Cements Ltd's shares were also heavily traded with total transaction worth Rs 39 million. Next, Siddhartha Bank Ltd, Nepal Bank Ltd and Nabil Bank Ltd Promoter Share posted turnovers of Rs 30 million, Rs 25 million and Rs 19 million, respectively.

World Merchant Banking and Finance Ltd saw maximum gain on the day with a surge of 7.61 percent. Subsequently, shares of Himalayan Distillery Ltd, Ganapati Microfinance Bittiya Sanstha Ltd and United Modi Hydropower Ltd shot up by over 4 percent each. Other gaining securities include Jyoti Bikas Bank Ltd, Kanchan Development Bank Ltd and NMB Hybrid Fund L-1.

Shares of Taragaon Regency Hotel Ltd, on the other hand, turned in the worst performance of the day with a loss of over 7 percent. Similarly, Reliance Finance Ltd and Universal Power Company Ltd tanked over 6 percent each. Everest Insurance Company Ltd, Unnati Microfinance Bittiya Sanstha Ltd and City Express Finance Co. Ltd were among other top losing stocks.

In the news, Prudential Insurance Company Ltd has called for its Special General Meeting (SGM) on June 25. The meeting is due to approve the proposal to issue 60 percent right shares to its shareholders. Besides, trading of Lalitpur Finance Company Ltd is suspended by Nepse after its agreement with Prime Commercial Bank Ltd for its acquisition.

ARKS technical analysis indicates the market forming a bearish candlestick formation after the day's decline. Selling pressure have sustained in the bourse after multiple failed attempts to cross the crucial 1,320 points resistance level. Bears seem dominant in the current context as reflected by decline in technical momentum indicators suggesting further downfall likely. On the downside, support is provided by 1,250 points mark.

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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