Stock market observes weakness as benchmark index falls 3.33 points

Published On: November 2, 2020 08:00 PM NPT By: Republica | @RepublicaNepal

KATHMANDU, Nov 2: After opening Monday’s session slightly higher, the Nepal Stock Exchange (Nepse) index hover in red throughout the session. The stock market experienced weakness in the first hour but attempted a recovery in the mid-day to reach its opening level. However, stocks saw further weakness going into the latter trading hours as Nepse ended the day 3.33 points lower at 1,637.63 points.

There was a slight correction in the Monday trading session. Nonetheless, market activity remained above Rs 2 billion mark. Over Rs 2.45 billion worth of shares were traded on the day.

In terms of sectoral performance, trading sub-index led the gains and closed up by 3.06%. It was followed by Microfinance sectors which jumped 2.39%. Sub-indices of Hotels, Hydropower, Finance, Non-Life Insurance, Manufacturing & Processing and Mutual Fund ended the day on the positive territory with a slight increment.

On the other hand, Banking, Development Bank, Others and Life Insurance sub-indices suffered modest losses in Monday’s trading.

Prime Commercial Bank Ltd was the most actively traded scrip of the day. Over Rs 124 million worth of the shares changed hands on the day. Likewise, Nepal Bank Ltd and Hydroelectricity Investment and Development Company Ltd recorded turnovers over Rs 81 million and Rs 80 million respectively. Prabhu Bank Ltd, Global IME Bank Ltd, First Microfinance Development Company Ltd, Deprosc Laghubitta Bittiya Sanstha Ltd, NIC Asia Bank Ltd and Arun valley Hydropower Development Company Ltd registered turnovers of over Rs 60 million apiece.

Among gainers, shares of Bishal Bazar Company Ltd, Sarathi Nepal Laghubitta Bittiya Sanstha Ltd, Gurans Laghubitta Bittiya Sanstha Ltd and Shiva Shree Hydropower Company Ltd rallied closer to the upper circuit limit of 10% each. Samudayik Laghubitta Bittiya Sanstha Ltd, Summit Laghubitta Bittiya Sanstha Ltd and Nepal Finance Ltd also saw strength and closed over 7% higher.

In terms of losers, General Insurance Company Nepal Ltd witnessed the biggest loss of the day. The microfinance shares tanked 3.14%. Similarly, shares of Citizen Bank International Ltd, Barun Hydropower Co. Ltd and Global IME Bank Ltd also struggled and dropped above 2% reach. Likewise, Saptakoshi Development Bank Ltd, Synergy Power Company Ltd, Nerude Laghubitta Bikas Bank Ltd and Agriculture Development Bank Ltd were among other major decliners for the day.

As per the ARKS technical analysis, the market formed a small bearish candlestick reflecting a slight correction on Monday’s trading session. Nonetheless, the index has still managed to hold the ground above 1600 points with significant volumes trading in the recent sessions. However, a drop below this level might suggest the possibility of further decline.

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)

www.arkscapitaladvisors.com