KATHMANDU, July 3: The benchmark Nepal Stock Exchange (Nepse) index lost 10 points early on Monday's trading but staged a comeback mid-session with the index recouping all its losses during the day. However, stocks came under pressure in the final trading hour with the index closing 4.82 points lower at a three-month low of 1,179.71 points.
The equity market posted another dismal session as the momentum has slowed to one of its weakest levels of late. Subsequently, the bourse witnessed a total turnover of Rs 204 million only as investors are not yet sanguine about market making recovery in the absence of any major catalyst.
Most of the major sub-indices finished the day lower. Only development bank and hotel stocks bucked the trend, with their sub-indices creeping 0.27 percent and 0.12 percent, respectively, higher. Hydropower Sub-index suffered the most on the day as it's sub-index fell 0.93 percent. Further, Banking and Finance sub-indices slipped 0.53 percent and 0.5 percent, respectively.
Global IME bank Ltd was the most actively traded stock on Monday with a total transaction of over Rs 17 million. Stocks of Jyoti Bikas Bank Ltd and Nepal Investment bank Ltd were next on the list with total transactions of more than Rs 10 million each. National Life Insurance Company Ltd, Everest Bank Ltd and Nepal Life Insurance Company Ltd were the other active stocks of the day.
In terms of top gainers, Unnati Microfinance Bittiya Sanstha was the biggest gainer of the day as it its prices went up by 6 percent. Next on the list was Gurans Life Insurance Company Ltd which saw its share price surge by 5.62 percent. Share price of Guheshwari Merchant Bank and Finance Co Ltd also jumped 4.92 percent.
Conversely, Rairang Hydropower Development Company Ltd continued its slump as its price dropped by over 7 percent. Similarly, Karnali Development Bank Ltd saw its share price fall by 26 percent, while share prices of Manjushree Finance Ltd and Synergy Power Development Ltd went down by 4.76 percent and 4.65 percent, respectively.
In terms of announcement, Swarojgar Laghubitta Bittiya Sanstha Ltd has set July 12 as the book closure date for its 100 percent rights issue. After the issuance, the microfinance's capital will reach to Rs 244 million. Further, Nagbeli Laghubitta Bittiya Sanstha Ltd will be floating 100 percent right shares to its shareholders from July 20.
As per the ARKS technical analysis model, the market has extended losses with a bearish candlestick formation for a third day in a row. The market failed to find support at 1,200-point mark last week and is continuing its downfall. With the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) trending firmly in the bearish zone and showing no signs of shift in the momentum, the Nepse index is now headed toward its immediate support of 1,168 points. The activity at that level with supportive volume can point out a short-term course for the equity market.
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)