In the first hour of Thursday’s trading session, stocks were bumpy, and by mid-day, they had made a modest decline. The index of the Nepal Stock Exchange (Nepse) plummeted to a level close to 2,720, but managed to recover in the last hours of the trading day. Despite this, the benchmark completed the session at 2,731.78 – a decrease of 3.22 points from where it began the session.
The bourse has seen a string of dull sessions in recent weeks, as investors have abstained from taking any significant positions ahead of the central bank’s monetary policy review. Because there was no discernible direction on the stock exchange, trade fell to less than Rs. 4 billion.
The ‘Others’, ‘Hotels & Tourism’, and banking sub-indices were able to defy the trend, gaining 0.91 percent, 0.76 percent, and 0.54 percent, respectively, to outperform the market. Trading, Development Bank, and Non-Life Insurance sub-indies, on the other hand, experienced declines of more than 1 percent apiece. All of the other parts concluded with a negative result.
Nepal Telecom Ltd, with a turnover of more than Rs. 266 million, maintained its position atop the list of actives. Mahalaxmi Bikas Bank Ltd and Civil Bank Ltd followed suit, generating revenues of Rs. 162 million and Rs. 148 million, respectively, in the same period. An annual revenue of Rs. 100 million was recorded by Sana Kisan Laghubitta Bittiya Sanstha Ltd. On the same day, the micro-lending institution issued a 25 percent equity dividend. Nabil Bank Ltd, Chandragiri Hills Ltd, and Jyoti Bikas Bank Ltd were among the other equities that had a lot of trading activity this week.
Samriddhi Finance Company Ltd experienced a 9.27 percent increase, followed by the newly listed Samling Power Company Ltd, which experienced an 8.17 percent increase. Among the companies that gained ground were Taragaon Regency Hotels Ltd (up 5.95 percent), Kumari Bank Ltd (up 4 percent), and Century Commercial Bank Ltd (up 4 percent). Joshi Hydropower Development Company Ltd, Corporate Development Bank Ltd, and Oriental Hotels Ltd were among the companies that reported gains in the last quarter.
Company laggards Manushi Laghubitta Bittiya Sanstha Ltd and Sana Kisan Laghubitta Bittiya Sanstha Ltd suffered 6.93 percent and 5.08 percent losses, respectively, in the third quarter. Other companies that suffered losses of more than 3 percent, including Karnali Bikas Bank Ltd, Himal Dolakha Hydropower Company Ltd, Chadragiri Hills Ltd, and Kalika Laghubitta Bittiya Sanstha Ltd, were also hit hard by the market.
When it comes to the technical side of things, the index followed the previous day’s doji candlestick with another spinning top candlestick, both of which are largely indicative of hesitation. Furthermore, declining volumes reflect the absence of any significant impetus. In addition, technical signs lack clarity. As a result, a breakthrough above or below the 2,850 or 2,680 line with volume will be critical in determining the direction of the next likely move in the equity market.