KATHMANDU, Dec 8: Stocks fell since the beginning of Wednesday’s trading session as the index dropped more than 25 points in the morning. A failed rebound attempt and a continuous dip thereafter saw the Nepse index hit a fresh 8-month low to close at 2,455.81. The day’s loss tally stood at 2,455.81.
Despite registering a gain on Monday, the index extended its downfall in the subsequent sessions giving up all of its gains. Lack of any upbeat news, amidst the ongoing liquidity crunch and elevated interest rates, has been the major factor driving the recent downfall. Turnover fell sharply to Rs. 2.66 billion.
Trading sub-index tumbled 3.73%. Other heavy losing groups include Development bank, Finance and Hydropower sectors which tumbled over 3% apiece. All other sectors saw notable losses. Commercial bank groups fell 1.53%.
Nepse closes above 2500 mark
National Hydropower Company Ltd and Nepal Telecom Ltd were the top turnover stocks with transactions of over Rs. 100 million each. Himalayan Distillery Ltd, Mahalaxmi Bikas Bank Ltd and Nepal Reinsurance Company Ltd were also traded heavily.
Standard Chartered Bank Ltd and Mailung Khola Jalbidhyut Company Ltd bucked the trend to close around 2% higher. Nepal SBI Bank Ltd, Ajod Insurance Ltd and Ru Ru Jalbidhyut Company Ltd closed slightly higher.
Samudayik Laghubitta Bittiya Sanstha Ltd and Excel Development Bank Ltd tanked sharply with each scrip plunging over 8%. Green Development Bank Ltd, Naya Sarathi Laghubitta Bittiya Sanstha Ltd, Samling Power Company Ltd and Janautthan Samudayic Laghubitta Bittiya Sanstha Ltd fell more than 7%.
Formation of a second bearish candlestick reflects notable weakness in the equity market. With the index making a lower closing low the short term trend remains south bound. Momentum indicators also reflect weakness with immediate support at 2,400, where a rebound can give opportunity for traders.
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)
