Stocks begin week’s trading on a negative note

Published On: December 31, 2018 08:48 AM NPT By: Republica  | @RepublicaNepal


KATHMANDU, Dec 31: The benchmark equity index rose more than 4 points to trade in the green briefly in the morning. Nonetheless, the index pared its early gains to trade lower by mid-day. Subsequently, the Nepal Stock Exchange (Nepse) index remained under pressure throughout the latter trading hours to finally settle with a loss of 10.62 points. The index closed the day's trading at 1,204.54 points. 

The index, which closed essentially unchanged on Friday, saw a loss of more than 10 points on Sunday. Nonetheless, the index is trending firmly higher for the month of December. Further, the index has also managed to close above the crucial 1,200 points mark. The drop in the index was also accompanied by a slump in daily turnover. The bourse posted a turnover of Rs 454 million against Rs 1 billion in the previous session. 

Most of the traded sectors also struggled following the broader market. A 6.77 percent fall in Nepal Telecom Ltd's shares dragged the 'Others' sub-index down by more than 4 percent. Further, sub-index of Trading sub-group also dropped 1.35 percent on the day. Life Insurance sub-index retraced 0.83 percent after a week of continuous rally. Market heavyweight banking sub-index also shed 0.62 percent. 

On the other hand, sub-indices of Hotels, Non-Life Insurance and Manufacturing & Processing segments closed in the green. 

Nepal Life Insurance Company Ltd's shares led the list of actives with a turnover of over Rs 38 million. Nepal Bank Ltd followed suit as more than Rs 30 million worth of the bank's shares changed hands. 

Next, share of Citizens Investment Trust and National Life Insurance Company Ltd registered turnovers of Rs 27 million and Rs 21 million, respectively. Nepal Credit and Commercial Bank Ltd, Chhimek Laghubitta Bikas Bank Ltd and Nepal Telecom Ltd were the other active stocks in the session. 

Among advances, Multipurpose Finance Company Ltd posted its third rally of almost 10 percent in four days. Additionally, Mahuli Samudayik Laghubitta Bittiya Sanstha shot up by more than 6 percent, while Citizens Investment Trust surged over 4 percent. Similarly, Citizens Investment Trust and Khanikhola Hydropower Co. Ltd registered gains of over 3 percent apiece.

Kabeli Bikas Bank, on the flipside, turned in the worst performance of the day as its share price plummeted 9.44 percent. Nepal Telecom Ltd also tumbled 6.77 percent after the company closed its shareholder's book on Sunday for the purpose of convening its Annual General Meeting (AGM) with distribution of 55 percent cash divided as a key agenda. 

Meanwhile, shares of Rairang Hydropower Development Company Ltd, Mahila Sahayatra Microfinance Bittiya Sanstha Ltd and Nepal Bangladesh Bank Ltd lost 5.45 percent, 4.59 percent and 4.34 percent, respectively. 

In the news, Api Power Company Ltd published its first quarterly financials of the fiscal year 18/19. The energy sector company reported an 83.10 percent year-on-year growth in its net profit to Rs. 30 million as per the report. 

As per the ARKS technical analysis, the market formed a bearish candlestick on a daily timeframe. Hence, the market has lost some steam following the substantial surge in the month of December. Technical indicators also indicate buying momentum subsiding in the current juncture. Nevertheless, the market is trending above the psychological support of 1,200 points from which a bounce back in the equity market can be expected. 


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