The index of the Nepal Stock Exchange (Nepse) dipped near the 2,750 mark at midday and then plateaued till the end of the session. Further selling pressure in the latter trading hours of the day resulted in a significant decline in the benchmark. At the close, the Nepse closed at 2,733.31, a decrease of 32.31 points from its previous session high.
Although the index attempted a comeback on Monday, it continued its downward trend, giving up the majority of its gains from the previous week. Turnover increased when compared to the previous session, but volumes remained low overall. Only Rs. 4.17 billion worth of stocks were traded on the exchange.
All sectors were under pressure, with the exception of the ‘Others’ section, which climbed by around 1 percent. The sub-indices for finance, hotels and tourism, hydropower, and development banks declined by 3.4 percent, 2.7 percent, 2.34 percent, and 2.23 percent, respectively. Heavyweight banks had their shares fall by 0.94 percent, while others saw their shares fall by a significant amount.
Its turnover accounted for 10% of total traded volume, indicating that Nepal Telecom Ltd continued to trade aggressively. An amount in excess of Rs. 415 million was transacted by the telecommunication operator. It was followed by National Hydropower Company Ltd, Mahalaxmi Bikas Bank Ltd, and Api Power Company Ltd, which had respective turnovers of R$122,000,000, Rs. 104,000,000, and Rs. 103,000,000, respectively. Arun Kabeli Power Ltd, Himal Dolakha Hydropower Company Ltd, and Nabil Bank Ltd were among the other companies that were heavily traded on the day of trading.
Stock in Manushi Laghubitta Bittiya Sanstha Ltd increased by 10%, extending its post-IPO rise to a third day. Nepal Telecom Ltd and Ganapati Laghubitta Bittiya Sanstha Ltd both saw their stock prices rise by more than 2 percent. Also among the top performers were Samudayik Laghubittha Bittiya Sanstha Ltd, Forward Laghubittha Bittiya Sanstha Ltd, and Sana Kisan Laghubittha Bittiya Sanstha Ltd, which received a total of $1 million.
The major laggards were ICFC Finance Ltd and Narayani Development Bank Ltd, both of which had their stock prices decrease by more than 5 percent. Goodwill Finance Company Ltd, Singati Hydro Energy Ltd, and Multipurpose Finance Ltd all experienced drops of more than 4% in their respective stock prices.
According to the ARKS technical analysis, the index created a bearish candlestick, breaking through its minor support level of 2,750 points. With indecision still reigning supreme and the absence of any discernible strength in the equity market, a test of the 2,680 support level appears likely. However, it is too soon to tell whether or not there will be any significant selling momentum. For its part, a break over the 2,850 level will herald the beginning of the equity market’s rebound.