KATHMANDU: The index fell sharply since the beginning of the trading hour with the Nepal Stock Exchange (Nepse) index losing almost 50 points till the mid-session. The market failed to recover and continued to maintain a negative bias throughout Tuesday's session. At the close of trading, the benchmark index lost a total of 44.33 points to settle at 1,272.06 points.
The stock market saw considerable weakness in Tuesday's session with a decline in daily turnover by 9.3%. Only Rs 1.465 billion worth of shares were traded on the day.
Most of the sectors closed in the negative territory except mutual fund sub-index which rose 0.46%. Trading, Non-Life Insurance and Life Insurance sectors led the losses as their index plunged by 6.18%, 5.99% and 5.82% respectively. Similarly, Microfinance and Manufacturing & Processing sub-indices struggled and gave up over 4% each. Likewise, Banking, Hotels, Development Bank, Hydropower, Finance and Others sub-index ended in the negative territory.
Shares of NIC Asia Bank Ltd, NMB Bank Ltd and Nepal Life Insurance Company Ltd were traded the most as their stocks traded worth Rs 100 million, 91 million, and 73 million respectively. Himalayan Distillery Ltd and Nepal Bank Ltd meanwhile, registered turnovers of over Rs 42 million each. Prabhu Bank Ltd, Global IME Bank Ltd, Nabil Bank Ltd, Everest Bank Ltd, and Global IME Promoter Shares were among other active stocks of the day.
Only few stocks managed to make it to the gainers list. Hydropower shares of Joshi Hydropower Company Ltd and Ghalemdi Hydro Ltd were among the few scrips which rallied by 7.69% and 3.28% on Tuesday. Likewise, Shares of Bishal Bazar Company Ltd, NMB Hybrid Fund L-1, Upper Tamakoshi Hydropower Company Ltd, Nabil Equity Fund, Bottlers Nepal Terai Ltd registered gain above 1% each.
On the other hand, Siddhartha Insurance Ltd, Nepal Seva Laghubitta Bittiya Sanstha Ltd, Swabhimaan Laghubitta Bittiya Sanstha Ltd, Nepal Insurance Company Ltd, United Insurance Company Nepal Ltd and Gurans Laghubitta Bittiya Sanstha Ltd share prices followed the market and tanked almost 10%. Microfinance stocks – Grameen Bikas Laghubitta Bittiya Sanstha Ltd, Kalika Microcredit Development Bank Ltd, and RMDC Laghubitta Bittiya Sanstha Ltd lost more than 8% on the day.
In terms of ARKS technical analysis, the market formed a strong bearish candlestick on the daily timeframe extending its downfall further. The Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) continue to lose its momentum at the present context. On Tuesday trading session, the index has crossed below its strong support level of 1280 points. Nonetheless, the market currently rests at its minor support of 1250 points where some rebound can be expected. However, highly cautious trading is suggested unless the market posts a significant move upside with noteworthy turnovers.
This column is produced by ARKS Capital Advisors Ltd
(Views expressed are those of the producer and do not necessarily reflect those of this publication)