Nepse extends losing streak

Published On: March 25, 2019 10:35 AM NPT


KATHMANDU: Stocks began trading on a feeble note as the benchmark equity index shed more than 9 points by the first half of Sunday's session. 

Though the Nepal Stock Exchange (Nepse) index made partial recovery in the afternoon, it eventually closed the first trading day of the week 5.78 points lower at 1,134.80 points.

The overall outlook in the secondary market remains fairly bearish as the market retraced after reaching 1,160 points earlier in March, signaling that the long-term downtrend is still in action. Further, the bourse is markedly losing its momentum with losses coming in four straight sessions. Meanwhile, volume remained sub-par as only Rs 232 million worth of shares were traded on the day.

Most of the traded sectors witnessed weakness. Only Hydropower sector closed marginally in green. Losses mainly came from Hotels and Non-Life Insurance scrips. 

Both sub-indices sank over 1 percent each. Next, sub-indices of Development Bank, Life Insurance and Manufacturing & Processing segments registered loss of 0.83 percent, 0.74 percent and 0.67 percent, respectively. Banking sub-index was also down by 0.47 percent.

Shares of Asha Laghubitta Bittiya Sanstha were traded actively in the bourse on Sunday. Over Rs 15 million worth of shares of the microfinance institution changed hands as the scrip witnessed loss for the first time since its listing. Next on the list were Siddhartha Bank Ltd, Promoter Share and Citizen Investment Trust which logged transaction of over Rs 10 million each. 

Upper Tamakoshi Hydropower Ltd, Nepal Life Insurance Co Ltd, and NMB Bank Ltd, were among other active scrips of the day.

In terms of advances, Nagbeli Laghubitta Bikas Bank Ltd, and Samudayik Laghubitta Bittiya Sanstha Ltd, saw their respective share prices go up by over 3 percent each. 

Share price of Chhyangdi Hydropower Ltd, also climbed also surged by around 3 percent. Further, share prices of Reliance Finance Ltd, IME General Insurance Ltd, and Dibyashwori Hydropower Ltd, were up by over 2 percent each.

On the losing side, shares of Universal Power Co Ltd which opened trading at Rs 300 per share, tanked to hit the lower circuit of 10 percent.  Similarly, share price of Shivam Cements Ltd also feel by 10 percent in its opening trading day. Microfinance companies followed suit as Arambha Microfinance Bittiya Sanstha Ltd, and Nepal Seva Laghubitta Bittiya Sanstha saw their share prices go down by 4.75 percent and 3.70 percent, respectively. 

Share prices of Ankhu Khola Jalavidhyut Co Ltd, Asha Laghubitta Bittiya Sanstha Ltd, and Arun Kabeli Power Ltd also fell by over 3 percent each.

On corporate front, Bhargav Bikash Bank Ltd, has scheduled its annual general meeting (AGM) for April 13. Approval of 6 percent cash dividend to its shareholders is one of the agendas of the AGM.
AS per the ARKS technical analysis, the index formed another bearish candlestick indicating sustained selling pressure in the exchange. 

Similarly, momentum indicators including Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest slightly bearish sentiment prevailing in the present context. Hence, investors are suggested to take a cautious stance before taking any major long positions in the secondary market.


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