KATHMANDU, March 20: The Nepal Stock Exchange (Nepse) index climbed up by over 4 points in early trading on Tuesday. However, stocks lost momentum shortly and erased earlier gains. The benchmark index logged gradual decline after midday to ultimately close the day 6.83 points lower at 1,147.15 points.

The market has lost steam after a surge of more than 50 points so far in March. Meanwhile, investors also seem less enthused to trade in the bourse as reflected by a slump in the trading volume. Total transactions fell by over 50 percent to Rs 148 million.

All major sub-indices edged lower on Tuesday with maximum loss coming from Trading stocks. The group's sub-index sank 1.15 percent. Similarly, sub-indices of heavyweight Banking and Development Bank scrips posted loss of 0.68 percent each. Further, Hydropower and 'Others' sub-index posted losses of 0.67 percent and 0.61 percent, respectively. Only Hotels sub-index closed the session unchanged.

Citizen Investment Trust witnessed the highest transaction on the day. High transaction of securities has been attributed to a bill to raise the company's authorized and paid-up capital to Rs 8 billion and Rs 3 billion, respectively, submitted by the finance ministry in the National Assembly. After the bill is passed, Nepal Rastra Bank plans to divest its stakes in the company and instead act as its governing body. Gurans Life Insurance Company Ltd and Global IME Bank Ltd Promoter Shares were also actively traded with turnovers of over Rs 14 million and Rs 11 million, respectively. Meanwhile, Upper Tamakoshi Hydropower Ltd, Nepal Life Insurance Company Ltd and Prabhu Bank Ltd registered turnover of over Rs 4 million each.

Among advances, Asha Laghubitta Bittiya Sanstha Ltd extended its rally further. Its shares hit the upper circuit of 10 percent on Tuesday. Next, share prices of Shree Ram Sugar Mills Ltd and Sindhu Bikash Bank Ltd increased by over 4 percent each. Shares of Sahayogi Bikas Bank Ltd and Janautthan Samudayik Laghubitta Bikas Bank Ltd also saw some strength as their respective share prices climbed up by over 3 percent each.

In contrast, shares of Miteri Development Bank Ltd struggled and registered price drop of almost 5 percent. Similarly, share price of Ridi Hydropower Development Company was down by 3.12 percent. Shine Resunga Development Bank Ltd, Arun Kabeli Power Ltd and Swarojgar Laghubitta Bikas Bank Ltd also saw their share prices go down by over 2 percent each.

Nepse has listed 44 million units (Initial Public Offering) of IPO shares for trading. The shares, which was sold at Rs 300 (including premium) for general public, is set to open in the range of Rs 161.60 to Rs. 484.80 per share.

As per the ARKS technical analysis, the index formed a second bullish candlestick in the week. Following the losses, the index has dipped below 1,150 points. Technical indicators also suggest the momentum faltering. Hence, bears are slightly in control and investors are suggested to refrain from going long unless a breakout above 1,165 points mark is observed.

This column is produced by ARKS Capital Advisors Ltd
www.arkscapitaladvisors.com
(Views expressed are those of the producer and do not necessarily reflect those of this publication)

 
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