Nepse falters further with modest decline

Published On: July 2, 2019 08:00 AM NPT By: Republica | @RepublicaNepal

KATHMANDU, July 2: Weakness from the previous session carried over to Monday's trading as the Nepal Stock Exchange (Nepse) index tanked more than 7 points in the first trading hour.

The bourse clawed back some of its earlier losses but traded in the red throughout the remaining session. At the close, Nepse stood at 1,242.03 points – down 2.86 points against Sunday's close.
Nepse fell for a fourth straight session amid lack of any positive impetus in the financial and economic space. Investors have kept from taking long positions ahead of monetary policy announcement which is due in mid-July. Turnover shrank significantly as the exchange witnessed a total transaction worth Rs 375 million only.

Sub-indices ended the day mixed. Modest gains came from Manufacturing & Processing, Development Bank, Hydropower and Life Insurance stocks as the respective sub-indices climbed slightly higher.

On the other hand, Hotels and Mutual Fund segments suffered with losses of 0.93% and 0.76%, respectively. Subsequently, all other sub-indices edged lower. Heavyweight banking sub-index shed 0.32%.

Nepal Bank Ltd continued to trade actively. More than Rs 26 million worth of the bank's shares changed hands. Prabhu Bank Ltd, secondly, registered a total turnover of over Rs 19 million. Meanwhile, Shivam Cements Ltd and NIC Asia Bank Ltd saw turnovers of over Rs 17 million apiece. Himalayan Distillery Ltd, Nepal Life Insurance Company Ltd Promoter Share, and Nepal Investment Bank Ltd were also actively traded.

Among gainers, Civil Laghubitta Bittiya Sanstha Ltd, Arun Valley Hydropower Development Company Ltd, and Swabhimaan Laghubitta Bittiya Sanstha Ltd outperformed the market notably as the scrips rallied over 4% each. Other top advances of the day include Kailash Bikas Bank Ltd, Gurans Laghubitta Bittiya Sanstha Ltd and Swadeshi Laghubitta Bittiya Sanstha Ltd which registered gains of over 3% apiece.

In contrast, Mithila Laghubitta Bittiya Sanstha Ltd declined the most as its share price slumped 5%. United Insurance Company Ltd fell 3.7%, while Summit Laghubitta Bittiya Sanstha Ltd closed 3.61% lower. Panchthar Power Company Ltd, Janautthan Samudayic Laghubitta Bikas Bank ltd and Karnali Development Bank Ltd were the other major decliners with losses of over 3% each.

On the corporate space, Swarojgar Laghubitta Bittiya Sanstha Ltd has called for its Special General meeting (SGM) on July 27. The meeting will give authority to its board to identify appropriate merger and acquisition opportunity and act on the same accordingly. Besides, issuance of 100% right shares is also among its agendas.

ARKS technical analysis indicates the market forming another bearish candlestick as the index has dropped further below the 1,250 points mark. Technical indicators also continue to fall as the sentiment remains firmly bearish in the present context. Consequently, further downward movement can be expected with some support seen around 1,220 to 1,225 points range.