KATHMANDU: Stocks fluctuated throughout Sunday's trading session but largely maintained a negative bias on the day. The benchmark Nepal stock Exchange (Nepse) index, which fell initially, tried to recover mid-day. However, stocks came under pressure in the remaining session to close slightly lower, shedding 2.78 points compared to last week to close at 1,175.72 points.
The bourse witnessed another day of slow trading amid absence of any major development on economic or financial space. Investors seemed reluctant to take any major positions in the market. Consequently, the exchange turned in another lackluster session with a turnover of only Rs 205 million.
All major sub-indices, except Manufacturing & Processing which added 0.66 percent, ended the day in red. Major weakness was visible among Microfinance stocks as its sub-index fell 0.85 percent. Development Bank and Non-Life Insurance sub-groups followed suit with their respective sub-indices going down by 0.8 percent and 0.74 percent. Besides, 'Others', Finance and Hydropower sub-indices posted marginal loss on the day.
Market participation remained largely in favor of commercial banks. Nepal Investment Bank Promoter Shares logged the highest turnover of over Rs 53 million. Next, Prabhu Bank Ltd Promoter Shares were also actively traded as over Rs 12 million worth of its shares changed hands. Further, shares of NMB Bank Ltd registered a total transaction of Rs 8 million. Citizen Investment Trust, Nabil Bank Ltd and Muktinath Bikas Bank Ltd Promoter Share were the other active stocks on the day.
Ngadi Group Power Ltd led the list of companies in terms of advances. Share price of the hydropower company went up by 4.19 percent. The company has announced 10 percent cash dividend to its shareholders. It has also put forth issuance of 30 percent right shares as one of its agendas for its upcoming annual general meeting (AGM). Further, unit prices of Bank of Kathmandu Ltd, Chhyangdi Hydropower Ltd and NIBL Pragati Fund gained over 3 percent each. Suryodaya Laghubitta Bittiya Sanstha Ltd and Best Finance Company also saw their share prices rise by over 2 percent each.
Conversely, shares of Karnali Development Bank Ltd and IME General Insurance Ltd logged some of the worst performances of the session as their share prices plunged 5.66 percent and 5.60 percent, respectively. Share price of NMB Microfinance Bittiya Sanstha Ltd also fell by over 5 percent on the day. Among others, shares of National Microfinance Bittiya Sanstha Ltd, Barun Hydropower Company Ltd and Nagbeli Laghubitta Bikas Bank Ltd dropped over 3 percent each.
ARKS technical analysis indicates the index forming a bearish candlestick for a sixth consecutive session. Correspondingly, Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) present that the market is losing its momentum following the streak of losses posted by the index. Nevertheless, the index is still trending range bound and is yet to present a major breakout in either direction from the current trading span with considerable turnover.