KATHMANDU, June 15: The Nepal Stock Exchange (Nepse) index began the first trading day of the week with a loss of 8.77 points on Monday as the market remained closed on Sunday in the event of Bhoto Jatra.
Even though the market snapped its 5-session losing streak on Tuesday with a modest gain, weakness ensued in the remaining two trading sessions. While the index shed 3.5 points on Wednesday, the index saw a loss of 2.92 points on Thursday. Eventually the index ended the week 15.04 points or 1.17 percent lower at 1,269.55 points.
After the bourse failed to find any significant ground following the budget announcement at the end of May, local stocks have been witnessing a steady decline bringing the loss tally of June to almost 50 points. Market participation also dropped significantly amid lack of any major developments.
Meanwhile, investors also seem to be watchful of the developments that might come in the upcoming monetary policy for the Fiscal Year 2019/20.
This week, the market registered a total turnover of Rs 2,050 million with daily turnover averaging to just over Rs 500 million.
Class 'A' stocks slightly outperformed the broader market but ended in he red, nonetheless. Sensitive Index shed 0.76 percent in the review period. All of the sectors struggled, barring the Trading sub-group which shot up by 3.14 percent.
On the other hand, Non-Life Insurance scrips were the biggest laggards in the week as the group's sub-index tumbled 4.57 percent. Next, Finance sub-index posted weekly loss of 2.41 percent. Hydropower and Life Insurance sub-indices, subsequently, fell 1.73 percent and 1.67 percent. Besides, all other sub-indices closed the week marginally lower.
Among actives, Shivam Cements Ltd has been witnessing maximum trading volumes since May's beginning. The cement manufacturing company's shares registered the highest turnover of Rs 145 million this week. NIC Asia Bank Ltd followed suit as more than Rs 102 million worth of the commercial bank's scrips changed hands. Next, Global IME Bank Ltd Promoter Share, Nepal Bank Ltd and Prabhu Bank Ltd posted turnovers of Rs 88 million, Rs 78 million and Rs 72 million, respectively.
In the economic space, Nepal Rastra Bank (NRB) issued Repurchase Agreement (Repo) worth Rs 15 billion via auction on Thursday. The issue, which has maturity period of 7 days, aims to inject short term liquidity in the financial market through Class 'A', 'B' and 'C' financial institutions.
ARKS weekly technical analysis indicates the market forming a second consecutive bearish candlestick extending previous week's losses.
Weekly Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) also indicate the market losing its momentum after 2 month long rally.
Hence, further correction can be expected. An immediate support for the market lies at 1,250 points mark.
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 this publication)