KATHMANDU, Nov 24: The sole equity market started the week on a negative note with the maximum loss coming on Sunday. Nepal Stock Exchange (Nepse) index witnessed a loss of more than 10 points on the first day of the week. 

Weakness carried over to the following sessions as the Nepse index further tumbled over 5 points and 8 points on Monday and Tuesday. The selling pressure eased off slightly on Wednesday with the Nepse index adding 1 point, while Thursday was marked by a marginal loss of over 1 point. Eventually, the index posted a weekly loss of 23.78 points or 1.97 percent to close at 1,181.41 points. 

The benchmark equity index, which sank more than 17 points in the preceding week, further stretched its losing run to close fairly below the crucial 1,200 points mark. Positive earnings reports, hence, have failed to offer any spark to the secondary market, which is now almost 100 points or 8 percent off its Fiscal Year 2018/19's closing high of 1,280 points. Similarly, recent dividend announcements have also not found any success to boost the overall investor sentiments in the bourse. Nonetheless, overall market participation improved on week-to-week basis as the exchange posted a total weekly turnover of Rs 1,245 million against Rs 825 million in the previous period. 

The drop in the Nepse index was also accompanied by a slump in the Sensitive index by 2.04 percent. Similarly, most of the major sectors ended the week significantly lower with the biggest losses coming from energy scrips. Hydropower sub-index tanked 3.78 percent in the week. Decline in heavyweight banking scrips also weighed on the broader market as the group's sub index fell 2.38 percent. 

Likewise, sub-index of Microfinance scrips declined 2.23 percent, while those of Life Insurance stocks fell 1.97 percent. Meanwhile, sub-indices of Non-Life Insurance, Hotels and Development Bank stocks also closed the week fairly lower. 

In the major news, Samudayik Laghubitta Bittiya Sanstha Ltd floated its Initial Public Offering (IPO) to its employees, mutual funds and general public this week. The issue, which was worth Rs 30 million, got substantially oversubscribed. Meanwhile, Sanima Bank Ltd had started issuance of '10% Sanima Debenture 2085' from November 16. 

Following the underwhelming response till its close on November 20, the bank has extended its issue period to December 16. 

Some of the commercial banks announced dividends in the review period, including NMB Bank Ltd and Machhapuchhre Bank Ltd. While NMB Bank Ltd declared 10 percent bonus shares and 20 percent cash dividend, Machhapuchhre Bank Ltd's dividend is limited to 10 percent cash payout. In other news, Sanima Bank Ltd has announced its book closure date on November 30 for its annual general meeting (AGM) and endorsement of dividend. Similarly, Soaltee Hotel Ltd is also closing its shareholders book on December 12 for the corresponding purpose.

ARKS weekly technical analysis indicates the equity market extending its losses in the review period. As a result, the index has fallen almost to some of the lowest closing levels since early 2016. Nonetheless, the index is yet to breach the support of 1,180 points. Experts suggest investors to remain watchful of the index's movement in this crucial zone for plausible direction of the index in the short term. 

This column is produced by ARKS Capital Advisors Ltd www.arkscapitaladvisors.com
(Views expressed are those of the producer and do not necessarily reflect those of this publication)

 
• equity_market
 
• Nepse
 
• ._Nepal_Stock_Exchange