KATHMANDU, Dec 13: The Nepal Stock Exchange (Nepse) index continued its sharp downside move on Monday. After witnessing highly volatile trading in the initial hour, the bourse succumbed to the selling pressure seen in the latter half of the session. Consequently, Nepse fell almost 80 points to close session at 2,281.67.

Following a minor recovery in Monday last week, the benchmark has fallen over 260 points in five subsequent sessions combined. Bears have continued to dominate with aggressive buying yet to be observed. Around Rs. 4 billion worth of equities changed hands.

All sectors tumbled sharply. Finance, Non-Life Insurance and Development Bank sectors were the laggards falling over 5% each. All other segments saw notable weakness, while heavyweight banks dropped around 2%.

Nabil Bank Ltd was the most traded scrip of the day. The commercial bank saw a turnover of over Rs. 180 million. National Hydropower Company Ltd and Himalayan Distillery Ltd registered turnovers of Rs. 134 million and Rs. 121 million. Himalayan Distillery Ltd, Manjushree Finance Ltd and Mahalaxmi Bikas Bank Ltd were among other actives.

A final minute buying of shares of Gurkhas Finance Ltd helped the stock end in green with a 9.5% gain. Bottlers Nepal Terai Ltd, Unilever Nepal Ltd and Mountain Energy Nepal Ltd also ended in positive territory with gains of 5.40%, 4.03% and 3.92%. Standard Chartered bank Ltd edged marginally higher.

8 stocks lost over 9% led by Swabhimaan Laghubitta Bittiya Sanstha Ltd which ended 9.99% lower. Dibyashwori Hydropower Ltd, National Hydropower Company Ltd, Goodwill Finance Company Ltd, Ankhu Khola Jalvidhyut Company Ltd, Terhathum Power Company Ltd, Multipurpose Finance Ltd and ICFC Finance Ltd also lost over 9% apiece.

On the ARKS technical front, the index formed another strong bearish candlestick reflecting further weakness. Continuation of short term downward move is evident with momentum indicators reflecting sellers’ control. The benchmark broke the psychological support of 2,300 as Nepse eyes 2,200 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)

 
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