KATHMANDU, Dec 9: The benchmark equity index extended its fall in the morning on Thursday. The benchmark dropped around 22 points before making a rebound towards its opening level at mid-day. Failing to hold ground in green, Nepse traded mostly in red before a small recovery at the closing minutes saw it close with a minor loss of 5.84 points at 2,449.97.
Losses have continued to drop its momentum as Nepse remains close to its lowest point of the year to date. Any major buying or selling pressure was absent in Thursday’s session to close the week on a neutral note. Turnover stood at Rs. 2.67 billion.
Most of the sectors ended in red. Only Hotels & Tourism, ‘Others’, Investment and Mutual Fund indices closed in green. All other sectors saw minor losses with dips of less than 1% each.
Himalayan Distillery Ltd, Api Power Company Ltd, Nabil Bank Ltd and Mahalaxmi Bikas Bank Ltd were traded the most in Thursday’s bland session. Each scrip saw a turnover of over Rs. 80 million. National Hydropower Company Ltd, Nepal Telecom Ltd and Arun Valley Hydropower Development Company Ltd were among other actives.
Synergy Power Development Ltd, Support Laghubitta Bittiya Sanstha Ltd, Singati Hydro Energy Ltd and Bottlers Nepal Terai Ltd were the winners with gains of 4.55%, 4%, 3.44% and 3.24%, respectively. Universal Power Company Ltd, Standard Chartered Bank Ltd and Panchthar Power Company Ltd ended in positive territory.
Samudayik Laghubitta Bittiya Sanstha Ltd extended its dip with another 5.82% plunge. Shree Investment & Finance Company Ltd, NIC Asia Laghubitta Bittiya Sanstha Ltd and Ghalemdi Hydro Ltd also came under pressure and dipped 5.14%,4.11% and 4.02%. Sabaiko Laghubitta Bittiya Sanstha Ltd, Swabhimaan Laghubitta Bittiya Sanstha Ltd and Mountain Energy Ltd were among other major decliners.
As per the ARKS technical analysis, the index formed a small spinning top candlestick reflecting indecision after continuous wave of selling pressure. Hence, loss of momentum is evident in the current juncture with the market likely to find support above 2,400 mark. A rebound with volume can, hence, mark a preliminary recovery sign.
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)