KATHMANDU, Dec 27: The Nepal Stock Exchange (Nepse) index opened higher and gyrated in positive and negative territory for the first trading hour. Unable to hold its footing above 2600 level, the index saw a steady decline mainly driven by profit taking in all of the sectors. At Monday’s close, Nepse registered a loss of almost 70 points to settle at 2,521.65.

A broad profit booking after advances for four straight days pulled the index back towards 2,500 level. However, turnover improved against the day earlier. Over Rs. 5.6 billion worth of shares changed hands on the day.

All sectors ended in negative territory, with Non-Life Insurance sectors giving up some of its prior day’s gains. The respective sub-index dipped more than 5%. ‘Others’ sub-index also tanked 4.62%. Development Bank, Hydropower, Investment and Finance sub-indices also rose more than 3%. All other sectors faltered sharply.

Nabil Bank Ltd’s shares were heavily traded with turnover of Rs. 306 million. Shivam Cements Ltd and Nepal Life Insurance Company Ltd followed suit with turnovers of Rs. 264 million and Rs. 250 million. Himalayan Distillery Ltd and Mahalaxmi Bikas Bank Ltd were among other actively traded stocks.

Gurkhas Finance Ltd and Madhya Bhotekoshi Jalavidyut Company Ltd rallied to hit the upper circuit limit of 10%. Samling Power Company Ltd, Mega Bank Ltd and Mahuli Samudayik Laghubitta Bittiya Sanstha Ltd were the other major gainers.

Joshi Hydropower Development Company Ltd and Ghalemdi Hydropower Ltd, on the other hand, tanked more than 8%. Sanima General Insurance Ltd and Janaki Finance Ltd faltered 7.17% each. Goodwill Finance Company Ltd, Panchthar Power Company Ltd and Nepal Finance Ltd suffered losses of over 6%.

As per the ARKS technical analysis, the index formed a bearish engulfing candlestick reflecting profit booking from psychological 2,600 mark. However, 2,500 support mark should be monitored to gauge Nepse’s plausible movement. Momentum indicators reflect indecision as major selling signal is yet to be observed.

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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