KATHMANDU, Oct 8: Stocks came under pressure since the beginning of Sunday's trading. The Nepal Stock Exchange (Nepse) index shed more than 14 points in the first half of the trading session. Subsequently, the benchmark equity index trimmed some of its initial losses in the afternoon. Despite the recovery attempt toward the close, stocks skidded in the final hour to close the day firmly lower. The index posted a loss of 13.01 points to close at 1,214.36 points.

With the dip seen on the day, Nepse prolonged its losses for a third straight session. Consequently, the bourse erased all its gains from the previous month. The sell-off continued ahead of the holiday season with a below average market participation. Total turnover decreased to Rs 408 million compared to Rs 429 million in the previous trading day.

All major sectors, except Manufacturing & Processing and 'Others' segments moved in tandem with the broader market. Hotel stocks were the biggest drag in the market as its sub-index sank over 2 percent. Major weakness was also visible among Non-life Insurance stocks with the group's sub-index going down by 1.78 percent. Development Bank, Microfinance and Banking sub-indices also shed more than 1 percent each.

In terms of market activity, shares of Nepal Life Insurance Company Ltd, Nepal Bank Ltd and NMB Bank Ltd were actively traded with turnover of over Rs 20 million each. Shares of Soaltee Hotels Ltd and NIC Asia Bank Ltd followed suit with total turnover of over Rs 16 million each. Prime Life Insurance Company Ltd Promoter Share, Civil Bank Ltd and Machhapuchhre Bank Ltd were the other active stocks of the day.

Among the gainers, Nadep Laghubitta Bittiya Sanstha Ltd extended its winning streak adding almost 10 percent for a fifth day in a row. Next on the list was National Hydropower Company Ltd which saw its share price surge by 3.75 percent. Himalayan Distillery Ltd also posted a gain of over 3 percent. Support Microfinance Bittiya Sanstha Ltd, NLG Insurance Company Ltd and Progressive Finance Ltd were among other gaining stocks of the day.

On the contrary, Laxmi Laghubitta Bittiya Sanstha logged the worst performance of the day as its share price plunged to almost hit the lower circuit of 10 percent. The micro-sector lender announced 26.32 percent cash dividend to its shareholders. Bhargav Bikas Bank Ltd also tanked over 6 percent in the session. Similarly, NIBL Pragati Fund, Central Finance Company Ltd and Oriental Hotels Ltd plunged over 4 percent each.

On the corporate front, Purnima Bikas Bank Ltd announced 11.37 percent dividend to its shareholders from the company's earnings of Fiscal Year 17/18. The payout includes 5 percent bonus shares and 6.37 percent cash dividend.

ARKS technical analysis indicates the market losing its momentum with the index dropping close to the support of 1,210-point mark. With bears strongly dominant at present, the index's movement at the aforementioned level is crucial and is likely to suggest a plausible direction for the equity market.

 
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