KATHMANDU, Dec 13: Stocks saw significant weakness throughout Sunday’s session. The Nepal Stock Exchange (Nepse) index dipped around 50 points in the morning. After holding ground around 2,400 level, the index extended its decline. The day’s total loss stood at 88.70 as the benchmark closed at 2,361.27.

Consequently, Nepse has ended in negative territory for a fourth straight day losing more than 180 points on the run. Turnover increased compared to the day earlier with active selling witnessed in the latter half of the day. Over Rs. 3.38 billion worth of shares changed hands on the day.

Trading sector was the biggest loser with the sub-index dipping 7.45%. Development Bank sub-index closely followed with a 6.41% dip. Most of the other sectors saw notable weakness. Heavyweight banks dropped 2.66%. 

Manjushree Finance Ltd was traded the most with turnover of over Rs. 312 million. The finance company announced 40% bonus shares and 6% cash dividend on Friday. National Hydropower Company Ltd followed suit with a turnover of Rs. 136 million. Nabil Bank Ltd, Mahalaxmi Bikas Bank Ltd and Api Power Company Ltd were among other actively traded shares. 

Unilever Nepal ltd managed to close 2% higher along with Swabhimaan Laghubitta Bittiya Sanstha Ltd which rose by the same percentage. Narayani Development Bank Ltd, Manjushree Finance Ltd and Support Laghubitta Bittiya Sanstha Ltd also closed in green. 

Naya Sarathi Laghubitta Bittiya Sanstha Ltd tanked firmly and closed at the lower circuit level of negative 10%. Janaki Finance Ltd and Nepal Hydro Developers Ltd also suffered with losses of around 9% each. Samata Laghubitta Bittiya Sanstha Ltd, Joshi Hydropower Development Company Ltd, National Hydropower Company Ltd and Janautthan Samudayic Laghubitta Bittiya Sanstha Ltd fell over 8% apiece. 

As per the ARKS technical analysis, the index formed another bearish candlestick suggesting continuation of downfall. Both RSI and MACD reflects bearish sentiment in the short term. Meanwhile, support can be taken as 2,300 psychological line.   

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)

 
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