KATHMANDU, Jan 5: The Nepal Stock Exchange (Nepse) index touched 2,700 mark briefly in the morning but could not cross the psychological level. Profit booking in majority of the sectors in the afternoon pulled the index towards negative territory. At the close, Nepse registered a loss of 30.77 points to settle at 2,649.18. 

The day’s decline was mainly driven by profit taking in most of the sectors. Turnover, however, remained above par with over Rs. 4.6 billion worth of securities changing hands. 

Most of the sectors turned red barring Hydropower and Finance segments which rose marginally. Losses were led by Hotels and Tourism sector which gave up 2.21%. Microfinance sector also dipped 2%. All other sectors lost on profit taking. 

Shivam Cements Ltd led the list of actives as more than Rs. 187 million worth of the cement manufacturer’s shares changed hands. Api Power Company Ltd, Upper Tamakoshi Hydropower Ltd and Arun Valley Hydropower Development Company Ltd were among other actively traded shares.

Madhya Bhotekoshi Jalavidyut Company Ltd extended its post listing rally with another 10% rally. Chhyangdi Hydropower Ltd and Terathum Power Company Ltd also rallied more than 5%. Janautthan Samudayic Laghubitta Bittiya Sanstha Ltd, Bishal Bazar Company Ltd and Mailung Khola Jalvidhyut Company Ltd were among other major gainers.

Microfinance stocks corrected firmly. Vijay Laghubitta Bittiya Sanstha Ltd, First Microfinance Laghubitta Bittiya Sanstha Ltd, Kisan Laghubitta Bittiya Sanstha Ltd and Civil Laghubitta Bittiya Sanstha Ltd closed more than 4% lower. Prime Life Insurance Company Ltd, Nerude Laghubitta Bittiya Sanstha Ltd, Support Laghubitta Bittiya Sanstha Ltd and Ganapati Laghubitta Bittiya Sanstha Ltd saw declines of more than 3%. 

As per the ARKS technical analysis, the index formed a small bearish candlestick reflecting sellers control in the session. Following a sharp rally in the past couple of days, some correction was evident in Wednesday’s session. RSI and MACD point towards possibility of some correction with immediate support at 2,600 mark. 

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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