Stock market opened on a positive note on Sunday, but failed to hold gains as the Nepal Stock Exchange (Nepse) index started declining after mid-day. Overall, the stock fluctuated between positive and negative territory before ending the day 0.02 percent lower at 1,224.39 points.
Even though daily turnover increased by 4.03 percent to Rs 486 million, the market couldn’t extend gains seen on the previous trading day. This shows that investors largely tried to book profits in the trading session.
From sectoral perspective, weakness was visible in most of the sub-indices. Trading Sub-index logged the highest loss of 1.41 percent. Similarly, Microfinance and Hydropower sub-indices dropped over 1.18 percent each. Conversely, Hotels stocks turned one of the best performances, as its sub-index jumped 2.23 percent. Likewise, Manufacturing & Processing, Banking and Other sub-indices landed in green zone.
In terms of market activity, shares of Chhimek Laghubitta Bikas Bank Ltd recorded the highest turnover of over Rs 50 million. Further, Nabil Bank Ltd Promoter Shares and Nepal Credit & Commerce Bank Ltd posted turnover of over Rs 17 million each. Nepal Life Insurance Company Ltd and National Life Insurance Company Ltd were also turned out attractive turnover figures.
Arambha Microfinance Bittiya Sanstha Ltd was the top gainer of the day as its share price surged by nearly 10 percent. Next on the list were Himalayan Distillery Ltd and Tinau Development Bank Ltd which saw their share prices surged by 6 percent and 4.65 percent, respectively. Corporate Development Bank Ltd and National Life Insurance Company Ltd were among other top gainers of the day.
On the contrary, shares of United Modi Hydropower Ltd and Rairang Hydropower Development Company Ltd shed over 6 percent each. Other top losing stocks were Western Development Bank Ltd, Swarojgar Laghu Bitta Bikas Bank Ltd and NMB Microfinance Bittiya Sanstha Ltd.
On corporate arena, Nepal Credit & Commerce Bank Ltd has announced July 31 as the date of book closure for 50 percent rights issue. In other news, Radhi Bidyut Company Ltd held its Annual General Meeting (AGM) on Sunday. Proposal to distribute 10 percent bonus shares to its shareholders was one of the agendas of the meeting.
As per the ARKS technical analysis model, the market formed a shooting star candlestick on a daily basis as index retraced after reaching intra-day high of 1,240.93 points. The immediate resistance lies around 1,240 to 1,250 points level, the cross of which might suggest further bullish momentum. However, Relative Strength Index (RSI) has stalled in the mid-zone, making the index movement toward either side likely. Likewise, Moving average Convergence/Divergence (MACD) has also flattened showing uncertainty in the short run.
Source: My Republica