KATHMANDU, Dec 10: Stocks began week with firm losses as Nepse plunged over 70 points on Sunday. A temporary recovery on Monday helped the index recoup around 32 points. Nonetheless, weakness prevailed in the latter trading days as the benchmark dipped 37 points, 53 points and 6 points in Tuesday, Wednesday and Thursday’s trading. Nepse’s weekly loss tally stood at 136.22 points with the benchmark closing at 2,449.97.
With the week’s decline, Nepse closed in negative territory for a third week in a row. Subdued sentiment as a result of rising interest rates and lack of liquidity has led to continuous dip in the equity market. Volumes has also dropped as most investors are holding back from trading actively considering the current volatility. Turnover fell on week-to-week basis. Around Rs. 17 billion worth of equities changed hands in the week on review.
Stocks end slightly lower extending losses for a third straight...
Class ‘A’ stocks also fell sharply reflected by a 4.52% dip in the Sensitive Index. Finance sector was the biggest laggard with the group’s sub-index tumbling almost 10%. It was closely followed by Trading and Development Bank sectors which dipped over 7% on average. All other sectors saw notable losses. Heavyweight banks fell 3.99%.
Weekly technical analysis reflects extension of the current short term downward move with formation of a lower low. Weekly MACD and RSI also confirm the current downside bias. However, with a dip of over 300 points since the beginning of November, a rebound is also likely given the index is resting close to the 2,400 psychological mark. Hence, Nepse’s rise with volume can see the index make another rebound,although a longer term recovery needs further confirmation.
This column is produced by ARKS Capital Advisors Ltd.
www.arkscapitaladvisors.com
(Views expressed in the article are those of the producer and do not necessarily reflect those of thispublication)
