Shares end little changed Wednesday’s dull trading – myRepublica
KATMANDU, July 14: After opening more than 10 more points, a deep correction pushed the benchmark stock index into negative territory. Nonetheless, the market as a whole cut initial losses to trade along the open level in the afternoon. Movements remained modest thereafter, with the index stabilizing with a gain of 1.01 point to 2,872.05.
After a volatile start to the week, the trading range has narrowed of late as investors remain reluctant to take heavy positions on either side. Nonetheless, the index continued to hit lows every day, suggesting that the scales are tipping in the buyer’s side. 2,800 continued to act as a key level as the index held up above the psychological level despite the sell-off last month. Turnover, however, remained weak as only Rs. 5.65 billion shares changed hands.
Indecision across the stock market was also reflected in sector performance, with composite sub-indices ending mixed. The hydropower and finance sectors strengthened and grew 2.71% and 1.48%, respectively. The investment, mutual fund, and hospitality and tourism sub-indices posted modest gains. In contrast, the Non-Life Insurance and ‘Other’ segments fell by around half a percent each. The Microfinance, Trading and Banking sub-indices lost around 0.3%. All other sectors fell slightly.
The shares of Gurkhas Finance Ltd were the most traded with a turnover of almost Rs. 30 million. Chhimek Laghubitta Bittiya Sanstha Ltd and Himalayan Distillery Ltd, subsequently, recorded transactions of Rs. 223 million and Rs. 197 million. Nirdhan Utthan Laghubitta Bittiya Sanstha Ltd, Nepal Life Insurance Company Ltd and Nabil Bank Ltd were the other active stocks for the day.
Himal Power Partner Ltd and Nepal Finance Ltd were the biggest advances of the day, with both scripts ending around 8% higher. Kalika Power Company Ltd, Rasuwagadhi Hydropower Company Ltd and Sanjen Jalavidhyut Company Ltd posted gains of 7.11%, 5.94% and 5.73%. In addition, mainly hydroelectric stocks ended the day in positive territory.
Among the big losers, Suryodaya Laghubitta Bittiya Sanstha Ltd and Prabhu Insurance Ltd plunged 2% each. Mahuli Samudayik Laghubitta Bittiya Sanstha Ltd, Ghalemdi Hydro Ltd, Goodwill Finance Company Ltd and Bishal Bazar Company Ltd followed suit with drops of more than 1% each.
According to ARKS technical analysis, the index formed a small spinning candlestick suggesting an extension of undecided trading for a second day. Both buyers and sellers have taken a passive approach, including not pushing prices side to side. Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) indicate a loss of bearish momentum. However, the index has yet to show a clear direction in the current market environment. Any major movement to one side or the other supported by consecutive sessions of large volumes will indicate the possible development of the stock market in the near term.
This column is produced by ARKS Capital Advisors Ltd.
(The opinions expressed in the article are those of the producer and do not necessarily reflect those of this publication)