The index of the Nepal Stock Exchange (Nepse) opened higher and fluctuated between positive and negative territory for the first trading hour of the day. Because it was unable to maintain its footing above the 2600 level, the index suffered a continuous decrease, which was primarily driven by profit taking across all sectors. At the close of business on Monday, the Nepse had lost about 70 points, settling at 2,521.65 points.
Following four consecutive days of gains, the index experienced a widespread profit taking that sent the index back around the 2,500 mark. However, when compared to the previous day, turnover increased. On the day in question, shares worth more than Rs. 5.6 billion changed hands.
All sectors finished in the red, with the Non-Life Insurance sector giving up some of its gains from the previous day. The related sub-index had a decline of more than 5%. The ‘Others’ sub-index fell by 4.62 percent as well. The Development Bank, Hydropower, Investment, and Finance sub-indices all increased by more than 3 percent within the same period of time. All other industries experienced significant declines.
The shares of Nabil Bank Ltd were highly traded, with a total turnover of Rs. 306 million. In the following years, Shivam Cements Ltd and Nepal Life Insurance Company Ltd posted revenues of Rs. 264 million and Rs. 250 million, respectively. Stocks such as Himalayan Distillery Ltd and Mahalaxmi Bikas Bank Ltd were among those that were heavily traded.
Gurkhas Finance Ltd and Madhya Bhotekoshi Jalavidyut Company Ltd rallied to reach the 10 percent upper circuit limit, which was reached in the previous session. Samling Power Company Ltd, Mega Bank Ltd, and Mahuli Samudayik Laghubitta Bittiya Sanstha Ltd were the other top gainers, with Samling Power Company Ltd being the most profitable.
In contrast, the stock prices of Joshi Hydropower Development Company Ltd and Ghalemdi Hydropower Ltd plummeted by more than 8 percent. Sanima General Insurance Ltd and Janaki Finance Ltd both experienced a 7.17 percent decline in share price. In addition to the Goodwill Finance Company Ltd, Panchthar Power Company Ltd and Nepal Finance Ltd all sustained losses of more than 6.0%.
According to the ARKS technical analysis, the index created a bearish engulfing candlestick, indicating that investors are taking profits from the psychological 2,600 level. However, it is important to keep an eye on the 2,500 support level in order to determine whether Nepse is likely to move. Momentum indicators show indecision since a significant selling signal has not yet been spotted.
ARKS Capital Advisors Ltd. is the company that produces this column.
(The opinions stated in this article are those of the author and do not necessarily reflect those of the newspaper.)