KATHMANDU, Dec 20: Stocks witnessed a sharp decline in the morning with the index dipping around 30 points. Despite the index making a recovery to trade in green in the afternoon, further decline saw the benchmark close with a loss of 17.93 points at 2,358.81.

A third consecutive daily loss saw the index pull back towards 2,350 mark. However, lack of any upbeat news has continued to weigh on the equity market. Turnover remained dismal as only Rs. 2.4 billion worth of securities changed hands.

Manufacturing & Processing and Microfinance segments ended in green with gains of 3.52% and 0.14%. All other sectors fell on the day. Development Bank and ‘Others’ sectors were the laggards with the sub-indices closing over 2% lower. Heavyweight banks saw a minor loss of 0.48%.

Gurkhas Finance Ltd was the top turnover stock of the day with a transaction of over Rs. 193 million. Himalayan Distillery Ltd, next, logged in a turnover of Rs. 187 million. Agriculture Development Bank Ltd, Nabil Bank Ltd, Manjushree Finance Ltd and National Hydropower Company Ltd were the other top turnover stocks of the day.

Gurkhas Finance Ltd and Himalayan Distillery Ltd hit the upper circuit level of 10%. Agriculture Development Bank Ltd also rose 4.99% after the bank announced 20% stock dividend. Mahuli Samudayik Laghubitta Bittiya Sanstha Ltd, Shiva Shree Hydropower Ltd and Janautthan Samudayic Laghubitta Bittiya Sanstha Ltd also added more than 4% apiece.

Mountain Energy Nepal Ltd, on the other hand, fell the most giving up more than 6% on its market price. Narayani Development Bank Ltd and Mailung Khola Jalbidhyut Company Ltd also fell close to 6%. Terhathum Power Company Ltd, Samriddhi Finance Company Ltd, Liberty Energy Company Ltd and Chhyangdi Hydropower Ltd were the other major laggards with losses of 4%.

On the technical front, the index formed a small bearish candlestick reflecting slight bearish sentiment. However, absence of heavy selling pressure suggests possibility of consolidation above 2,300 mark. RSI and MACD indicators also suggest subsiding bearish momentum. A rebound with volume can provide opportunities to go long on short term trade, while the medium term outlook remains uncertain.

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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