KATHMANDU, Dec 16: Stocks came under pressure since the beginning of Thursday’s session. The benchmark fell around 25 points in the morning before making a small recovery. However, stocks continued to dip thereafter and traded flat at 30 points negative for most of the session. The Nepse index finally ended with a loss of 37.87 points at 2,376.74.
After Tuesday’s massive rally, the index gave up some of its gains in the two subsequent sessions. Nonetheless, the market trends over 100 points higher from its low hit on Monday. Meanwhile, turnover remained on the lower end of the spectrum. Only Rs. 2.3 billion worth of equities changed hands.
Barring mutual fund sector, all sub-groups ended in green. Development Bank and Hydropower sectors were the biggest decliners with both sub-indices losing over 3%. Heavyweight banks dipped 0.34%.
NEPSE plunges below 2,000 points, daily turnover decreases to R...
Prabhu Bank Ltd’s shares were traded the most ahead of its book closure for annual general meeting. Over Rs. 94 million worth of the equities changed hands. Nepal Bangladesh Bank Ltd, Samriddhi Finance Ltd, Api Power Company Ltd and National Hydropower Company Ltd were the other active stocks of the day.
Nepal Bangladesh Bank Ltd was the biggest percentage gainer with an advance of 10%. Swabhimaan Laghubitta Bittiya Sanstha Ltd and Mountain Energy Nepal Ltd followed with gains of 5.35% and 4.03%. Corporate Development Bank Ltd, Manakamana Smart Laghubitta Bittiya Sanstha Ltd and Gurkhas Finance Ltd also ended in green.
On the other hand, Green Life Hydropower Company Ltd, Mailung Khola Jalbidhyut Company Ltd, and Himal Power Partner Ltd tanked more than 7% each. Other energy stocks also came under pressure. Nepal Hydro Developers Ltd, Dibyashwori Hydropower Ltd and Mountain Hydro Nepal Ltd also dipped over 6% each.
As per the ARKS technical analysis, the index formed a small bearish candlestick reflecting weakness. But the selling pressure remains feeble of late with a below par turnover. RSI and MACD indicators suggest neutral sentiment with a possibility of a consolidation in the current zone. Immediate support can be taken as 2,300 mark.
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)
