KATHMANDU, August 24: The equity market remained under pressure since the opening of Tuesday’s session. After dipping around 13 points initially, the index made a recovery to trade briefly in green. However, relentless selling pressure in most of the composite sectors kept the index on a steady decline throughout the afternoon. At the close, Nepse lost 56.03 points to end at 3,124.87.
The benchmarkfaltered sharply after a loss of around 17 points in Thursday last week. A sharp plunge in energy stocks dragged the index firmly lower with Nepse dipping more than 50 points, its biggest loss in more than 2 months. Turnover, however, has remained upbeat with over Rs. 16 billion worth of equities changing hands.
Barring, Finance, Non-Life Insurance and Mutual Fund sectors, all sub-groups ended in red. Hydropower sub-index tanked 6.20% followed by Investment sub-index, which lost 4.43%. Development Bank and Manufacturing & Processing sectors dipped 3.94% and 2.18%, respectively. All other sectors ended firmly in negative territory.
Nepse begins week in the red
On the gainer’s front, Gurkhas Finance Ltd and Jeevan Bikas Laghubitta Bittiya Sanstha Ltd rallied exactly 10% apiece. Central Finance Company Ltd, Neco Insurance Co. Ltd and General Insurance Company Ltd posted gains of 7.47%, 5.06% and 4.49%. Premier Insurance Company Ltd, Manakamana Smart Laghubitta Bittiya Sanstha Ltd, CEDB Hydropower Development Company Ltd and Ridi Hydropower Development Company Ltd rose around 4% apiece.
On the other hand, energy scrips dominated the list of major decliners. 14 stocks remained locked in the negative circuit limit of 10%. National Hydropower Company Ltd, Hydroelectricity Investment and Development Company Ltd, Khani Khola Hydropower Ltd and Dibyashwori Hydropower Ltd were the major laggards. Development bank stocks also came under significant pressure.
As per the ARKS technical analysis, the index formed a strong bearish candlestick on the daily timeframe reflecting notable selling pressure on profit taking. With the index dipping firmly of late, the index now rests close to the psychological support level of 3,100 mark. Momentum indicators also reflect some downside movement on the cards. A breach of 3,100 can indicate further correction, while a rebound can see the index consolidate in the current zone.
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)
