KATHMANDU, Sept 15: The Nepal Stock Exchange (Nepse) index opened slightly higher in the morning but dipped firmly within the first trading hour. The benchmark was down by around 25 points at mid-day with further selling pressure dragging the index lower in the latter trading hours. At the close, Nepse stood at 2,889.03 – down 40.26 points against the session earlier.
With the index’s dip, market participation has also fell notably of late. With two back to back sessions with turnovers of below Rs. 6 billion, enthusiasm among investors seem firmly subdued. With the beginning of budget holiday, investors are also concerned about the possibility of decrease in liquidity. Besides, few BFIs are also on the verge of increasing their interest rates, keeping the investors from taking heavy buying positions.
All of the sectors ended the day in red with Finance stocks taking major hit. The sub-index ended 3% lower. Hotels & Tourism, Development Bank, Hydropower and Non-Life Insurance sub-indices also fell over 2%. All other sectors saw notable weakness.
Shares of Arun Valley Hydropower Development Company Ltd were traded the most with over Rs. 221 million worth of the scrips changing hands. Sanima Life Insurance Ltd followed suit with a turnover of Rs. 170 million. ICFC Finance Ltd, Rairang Hydropower Development Company Ltd and National Hydropower Company Ltd were among other actively traded stocks.
On the gainers front, Manakamana Smart Laghubitta Bittiya Sanstha Ltd was the day’s biggest gainer. The microfinance stock rose 8.23%. Corporate Development Bank Ltd, Chhyangdi Hydropower Ltd and Mountain Energy Nepal Ltd also ended the day in green.
Himal Urja Bikas Company Ltd, Gurkhas Finance Ltd and Ru Ru Jalbidhyut Pariyojana Ltd, on the other hand, suffered the most with each scrip plunging around 5% each. Sindhu Bikash Bank Ltd, Goodwill Finance Co. Ltd, Nepal Hydro Developers Ltd and ICFC Finance Ltd lost 4% apiece.
On the ARKS technical front, the index formed a strong bearish candlestick reflecting extension of selling pressure. Besides, the index also fell below 2,900 mark suggesting sellers control in the equity market. Given the market fails to find footing above 2,900 mark, the index will likely test its support at around 2,800. Technical indicators suggest loss of momentum in the equity market.
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)