KATHMANDU: Stocksender pressure throughout Sunday's trading session. The benchmark Nepal Stock Exchange (Nepse) index fell below 1,260 points in the initial trading hour. A steady decline in the remaining session saw the benchmark index falter further to close the day 10.01 points down at 1,254.35 points.

The day's decline saw the index erase all of the gains logged on Thursday as the market failed to extend its upward movement. Consequently, the index fell to two-month low on Sunday. The local bourse is yet to make any significant recovery from the correction seen in the month of June so far. Market activity, despite improving on the day, still remains under par. Only Rs 482 million worth of shares were traded on the day.

Except Mutual Fund, Development Bank and Finance sectors, which registered modest gains, all other sub-indices followed the broader index to close the day in red. Biggest losses came from insurance segments as both Non-Life and Life Insurance sub-indices were down by 1.63 percent and 1.21 percent, respectively. Further, Hydropower, 'Others', Manufacturing & Processing and Microfinance sub-indices closed the day over 1 percent lower each. Hotels and Banking sub-indices, meanwhile, were down by 0.71 percent and 0.61 percent, respectively.

Shares of Laxmi Bank Ltd were traded actively on the day as Rs 41 million of the commercial bank's shares were traded on the day. Second on the list was Deprosc Laghubitta Bittiya Sanstha Ltd with transaction of Rs 23 million. Similarly, Chilime Hydropower Company Ltd, Civil Bank Ltd Promoter Share and Nepal Bank Ltd posted turnovers of over Rs 22 million each. Other commercial banks followed suit.

Gurans Laghubitta Bittiya Sanstha Ltd and Ganapati Microfinance Bittiya Sanstha Ltd notched the best performances of the day as share prices of both the companies rallied to hit the upper circuit of 10 percent. Share price of Janautthan Samudayik Laghubitta Bittiya Sanstha Ltd was also up by 8.59 percent after the mico financial institution announced its Annual General Meeting (AGM) on July 15 with agendas including endorsement of bonus shares and rights issue, among others. The company, which is launching 100 percent rights issue, has proposed to distribute 20 percent bonus shares to its shareholders. It has also proposed to launch 200 percent rights issue to its shareholders. Nepal Agro Laghubitta Bittiya Sanstha Ltd and Miteri Development Bank Ltd were among other gaining scrips with advances of 4.98 percent and 2.78 percent, respectively.

Swadeshi Laghubitta Bittiya Sanstha Ltd, on the other hand, registered the biggest loss of the day as its share price tumbled 6.55 percent. Similarly, Shikhar Insurance Co. Ltd saw its share price fall by 6 percent after the non-life insurer notified Nepse on Friday stating that the company will not be distributing dividends for the fiscal year 2017/18 to its shareholders despite logging net profit of Rs 455 million as per Nepal Financial Reporting Standard (NFRS). The net profit will instead be used to meet the reserve requirements set by the NFRS, according to the company. Unit prices of Civil Bank Ltd Promoter Share and Naya Nepal Laghubitta Bittiya Sanstha Ltd were down by 5 percent each.

As per ARKS technical analysis, the market formed a bearish candlestick failing to add to Thursday's gains. Consequently, the index has continued to trade in 1,250 to 1,260-point band. Hence, the breakout and close outside of this range with significant volume might indicate the possible direction of the index. Technical indicators, meanwhile, indicate bearish sentiment still prevalent in the current scenario.

 
• nepse
 
• market
 
• stock