KATHMANDU, Mar 10: The Nepalese equity market opened Wednesday’s session in green but immediately pulled back into the negative territory within few minutes of the trading.Nonetheless, the market managed to recoup its early losses within the first hours of trading, but again failed to maintain its foothold in the positive side of spectrum. Thereafter stocks remained under pressure for the rest of the trading session. However, the index managed to recover towards the closing hour and ended at 2458.49 with a merger decrement of 3.40 points.

The total turnover continued to saw decrement. Only Rs. 4.100 million worth of shares were traded in the day.

Gains came from, trading groups, which ended 8.15% higher. Similarly, Hotels and Tourism, Others, Manufacturing & Processing sub-indices rose 2.2%, 1.96%, and 1.83% respectively. Similarly, Finance and Investment also closed in a green note with a meager increment. In contrast, Non-Life Insurance stocks came under pressure and dropped 1.01% on the day. Banking, Development Bank, Microfinance, Life Insurance and Mutual Fund segments saw minor losses.

Shares of Nepal Doorsanschar Company Ltd were traded the most with a turnover of Rs. 557 million. Nepal Infrastructure Development Bank Ltd, Arun Valley Hydropower Company Ltd and Nepal Insurance Co. Ltd posted turnovers of Rs. 207 million, Rs. 146 million and Rs. 134 million respectively.  Shikhar Insurance Company Ltd, Nepal Reinsurance Company Ltd, Neco Insurance Co. Ltd and Nepal Life Insurance Company Lt were among other heavily traded stocks.

Chandragiri Hills Ltd led the list of gaining stocks with almost 10% surge in its share price. Ghalemdi Hydro Ltd and Nepal Hydro Developers Ltd also remained locked in the positive circuit limit with a gain of 9.92% and 9.55% respectively. NRN Infrastructure and Development Bank Ltd, Salt Trading Corporation and Liberty Energy Company Ltd jumped over 8% each. Similarly, Bottlers Nepal (Terai) Ltd, Mountain Hydro Nepal Ltd and Sanima Mai Hydropower Ltd were the other gaining scrips for the day.

On the other hand, Rairang Hydropower Company Ltd, Mithila Laghubitta Bittiya Sanstha Ltd and Shikhar Insurance Co. Ltd suffered the most as the stocks dropped 4.60%, 4.15% and 4%, respectively. Arun Valley Hydropower Company Ltd and Mahuli Samudayik Laghubitta Bittiya Sanstha Ltd also fell above 3% apiece. Sunrise First Mutual Fund, Sagarmatha Insurance Co. Ltd, NIC Asia Balance Fund and Mirmire Microfinance Development Bank Ltd were the other major losers with declines of over 2% each.

As per the ARKS technical analysis, the market formed a bearish candlestick for the third consecutive day. Besides, volumes also dropped on the day. A deeper correction may see the index test the strong psychological support at 2,360 mark whereas immediate resistance lies at 2,600 psychological mark.

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)

www.arkscapitaladvisors.com

 
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