Nepse posts weekly loss of 73 points despite mid-week recovery

Nepse posts weekly loss of 73 points despite mid-week recovery
By Republica
Published: December 18, 2021 05:36 PM

KATHMANDU, Dec 18: The equity market continued to suffer with the Nepse index ending in red for a fourth consecutive week. Opening the week with an 88.70-point decline the bourse set a firmly negative tone for the review period. After faltering almost 80 points on Monday, a sharp recovery ensued. On Tuesday, the benchmark jumped 137.18 points. However, stocks corrected further on Wednesday and Thursday with the benchmark dipping 4.23 points and 37.88 points, respectively. The overall weekly decline was 73.23 points with Nepse ending at 2,376.74.

With liquidity among BFIs yet to improve, interest rates are still on the higher end of the spectrum, making investable funds expensive and also driving the funds away from the equity market. Turnover fell slightly on week-to-week basis as the market participation of the week was recorded as Rs. 16.11 billion.

All sectors turned lower mirroring the broader market. Biggest losers were Non-Life Insurance and Development Bank sectors which dropped by more than 5%. Trading sub-index also fell 5%. All other segments saw losses. Heavyweight banks dipped by 1.49%, the smallest weekly loss among other sectors.

Technically, the index made a sharp rebound from 2,260 mark in the week, as the level can be taken as an immediate support for the equity market. Formation of a long lower wick also reflects subsiding bearish pressure.  With many stocks around their yearly lows, further dips remain unlikely. However, a rebound backed by increase in volumes can validate possibility of a strong rebound.

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)

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