The stock market opened Tuesday on a flat note, but has already fallen since the start of the day. The index of the Nepal Stock Exchange (Nepse) dipped below the 2,800 level in the morning and failed to make any significant gains after that, according to market analysts. Later in the afternoon, the benchmark index fell by almost 100 points before a brief rebound saw the index settle just a few points above its intraday low. A loss of 79.79 points was recorded by the NEPSE, which closed trading at 2,749.85 points.
After failing to hold onto the 2,800 barrier, the Nepalese market has extended its slump. Stock market investors have refrained from establishing large positions in the stock market because of speculation about the Fed’s monetary policy review, which is scheduled for later this month (November). Rs. 6.5 billion was the total amount of turnover.
Financiers and development bank equities were the worst hit, with both sectors closing more than 5% lower on the day of the closure. The ‘Others’ sub-index decreased by 4.12 percent, while the Non-Life Insurance and Hotels & Tourism categories also fell by almost 3 percent. There was significant pressure on all other segments. 1.91 percent declined in the case of heavyweight banks
The most actively traded stocks were those of Nabil Bank Ltd, with a total turnover of Rs. 298 million in the month of December. There were transactions worth Rs. 258 million and Rs. 224 million recorded by Sahas Urja Ltd and Api Power Company Ltd, respectively. Other equities that were frequently traded included National Hydropower Company Ltd, Prime Commercial Bank Ltd, and Arun Valley Hydropower Development Company Ltd.
Ten percent has been added to the value of newly listed shares of Terathum Power Company Ltd, Manushi Laghubitta Bittiya Sanstha Ltd, and Sahas Urja Ltd. A 1.73 percent increase was recorded by Unilever Nepal Ltd. A further 1.57 percent was added to Prime Commercial Bank Ltd shares after the commercial bank issued 16 percent bonus shares for the fiscal year 2020/2021. LBS Ltd and Nepal Infrastructure Bank Ltd both saw their support increase by a sliver of a percentage point.
However, Mahalaxmi Bikas Bank Ltd and ICFC Finance Ltd saw their gains from the previous day reversed, sending their stock prices plunging to the lower circuit of 10%. Several companies, including Mithila Laghubitta Bittiya Sanstha Ltd, the Goodwill Finance Company Ltd, the Universal Power Company Ltd, and Samudayik Laghubitta Bittiya Sanstha Ltd, saw their stock prices fall by approximately 7 percent. The list of losers was dominated primarily by stocks in the energy and banking industries.
After buying pressure reached fatigue over the 2,800 barrier, according to the ARKS technical analysis, a powerful bearish candlestick was formed on the daily Nepse chart, indicating that sellers were gathering momentum after the mark was reached. Volumes are declining, which shows a lack of enthusiasm, and a decline towards the 2,700 level is possible. A probable correction is indicated by the RSI and the MACD indicators in the sessions to come.