KATHMANDU, Oct 1: Stocks came under pressure from the very beginning of the trading session on Sunday. Consequently, the Nepal Stock Exchange (Nepse) index shed almost 14 points mid-session. Nonetheless, the index recovered some of its losses in the remaining trading hours to close 10.47 points lower at 1,256.71 points.
This is the third straight day that the benchmark index has shed value. This can be attributed to profit booking. However, the turnover maintained its level with a slight increment of 2.57 percent. Over Rs 588 million worth of shares were traded in the bourse in the first trading day of the week.
In terms of sectoral performance, most of the sub-indices ended the day in red. Only, Trading sub-index gained value on Sunday. Significant weakness was visible in Hotels stocks reflected by a decline of almost 2 percent. Next on the list was Manufacturing & Processing sub-index which went down by 1.5 percent. Development Banks and Microfinance groups also came under pressure as their respective sub-indices dropped 1.45 percent and 1.02 percent, respectively. Likewise, sub-indices of Non-life Insurance, Banking, Other and Finance groups also closed lower on the day.
Nepse stretches losses for third straight day
Global IME Bank Ltd was the most active stock on the day with total turnover of Rs 64 million. Similarly, Rs 50 million and Rs 31 million, respectively, worth of shares of Soaltee Hotels Ltd and NIC Asia Bank Ltd changed hands on the day. Shares worth over Rs 25 million each of NMB Bank Ltd and Nepal Bank Ltd were also traded on the day. Other top turnovers for the day included shares of Nepal Bank ltd, Prabhu Bank Ltd and Machhapuchhre Bank Ltd.
Among the advances, Salt Trading Corporation was the day's top gainer as its share price rallied by 3.85 percent. Best Finance Company Ltd's scrips advanced 3.03 percent. Further, shares of Nirdhan Utthan Laghubitta Bittiya Sanstha Ltd and Citizens Mutual Fund-1 also logged gains of over 2 percent each. Among others, shares of Api Power Company Ltd, Nadep Laghubitta Bittiya Sanstha Ltd and Gurkhas Finance Ltd were other active stocks of the day.
Shares of Mahalaxmi Bikas Bank Ltd suffered the most as its share price plunged 6.25 percent on the day. It was followed by shares of Swadesi Laghubitta Bittiya Sanstha Ltd and Green Development Bank Ltd with a drop of over 4 percent each. Central Finance Company Ltd also saw its share price go down by 4 percent. Other losing Microfinance scrips of the day include National Microfinance Bittiya Sanstha Ltd, Womi Microfinance Bittiya Sanstha Ltd and Unnati Microfinance Bittiya Sanstha Ltd.
On corporate space, RSDC Laghubitta Bittiya Sanstha Ltd has proposed 5 percent bonus shares and 5 percent cash dividend to its shareholders from the net profit of Fiscal Year 2074/75. The decision is awaiting approval from its Annual General Meeting (AGM).
ARKS technical analysis indicates the market extending its correction for the third straight day. With the day's decline, the index has reached to the psychological support of 1,250 points. Hence, if the market holds ground in current level a bounce back can be expected in short term.
