KATHMANDU, Dec 19:The benchmark Nepal Stock Exchange (Nepse) index opened Wednesday's trading on a positive footing. However, stocks struggled after midday, dragging the benchmark index slightly in the red territory. At the close, the index witnessed a modest drop of 3.30 points to close the day at 1,152.07 points.
Investors continue to maintain a watchful stance after some correction witnessed in the beginning of the week. With most of the traders booking profit on short-term gains, buying pressure remained subdued on the day. Traded volumes continued to slump as only Rs 295 million worth of shares changed hands.
Stocks flat after heavy fluctuations on Monday
On sectoral front, Trading sub-group shot up by 3.74% driven by rally in share prices of Salt Trading Corporation, among others. Development Bank and 'Others' sub-indices were also up by 0.13% and 0.11%, respectively. Besides, all other sectors closed the day in red. Hotels stocks suffered the most as reflected by a 2.42% drop in the group's sub-index. Non-Life Insurance and Hydropower sub-indices slipped around 0.8% each. Sub-index of Manufacturing & Processing segment was down by 0.55%, while Microfinance sub-index ended 0.5% lower.
NMB Bank Ltd continued to see active market participation as more than Rs 49 million worth of the bank's shares were traded on the day. Next on the list was Nepal Bank Ltd which posted turnover of over Rs 16 million, while Nabil Bank Ltd and Salt Trading Corporation posted turnovers of Rs 11 million each. Further, Nepal Life Insurance Company Ltd, Gurans Life Insurance Company Ltd and Deva Bikas Bank Ltd were among other active scrips of the day.
Share price of Bishal Bazar Company Ltd increased the upper circuit of 10% on the day. Following closely were Nepal Finance Ltd and Dibyashwori Hydropower Ltd which saw their respective share prices go up by 9.56% and 9.26%, respectively. Share price of Kalika Power Company Ltd posted a gain of 5%. Similarly, shares of Summit Laghubitta Bittiya Sanstha Ltd, Joshi Hydropower Development Company Ltd and Nepal Hydro Developers Ltd also saw considerable strength on Wednesday.
Nepal Seva Laghubitta Bittiya Sanstha Ltd, on the other hand, was the worst performer of the day. The micro lender's share price tumbled 7.69%. Civil Laghubitta Bittiya Sanstha Ltd, Synergy Power Development Ltd and Best Finance Company Ltd followed suit with declines of 6.02%, 5.21% and 4.55%, respectively.
In terms of ARKS technical analysis, the market formed a small spinning top bearish candlestick which reflects slightly neutral to bearish sentiment. Traded volumes in the day were largely subdued signaling lack of conviction in the market. Technically, the market rests near its support of 1,150 points where the index's movement will be crucial in determining further course of the secondary market. Hence, cautious trading is suggested in the present context.
