The Nepal Stock Exchange (Nepse) indexremained volatile throughout Monday's trading session. The benchmark fellslightly in the first trading hour, but managed to pare its losses in theafternoon. At the end of the trading session, Nepse closed at 1241.19 points,or 9.55 points higher compared to Sunday.

The stock market recovered marginallyafter posting significant loss in the past two trading days. However, pricefluctuation seen in the day shows that investors are still in a state ofindecision. No major catalyst to uplift the market has been observed recently.Consequently, the stock market recorded a moderate turnover of Rs 440 million –down by 0.92 percent compared to Sunday. Major sub-indices ended the day ingreen. Hotels sector turned in the best performance as its sub-Index rose 3.35percent. Similarly, sub-indices of Insurance and Microfinance groups surgedabove 1 percent each. Conversely, sub-indices of Trading, Finance, Developmentbank sectors closed lower.

Nabil Bank Limited (Promoter Share) wasthe most active stock on the day, recording turnover of over Rs 38 million.Likewise, shares worth Rs 17 million of Civil Bank Ltd changed hands on theday. The bank has recently proposed 10.25 percent bonus shares after which itscapital will reach the mandatory Rs 8 billion. Shares of Nepal Bank Ltd andNepal Investment Bank Ltd also recorded high turnovers on Monday.

Unnati Microfinance Bittiya Sanstha Ltdled the gains for the second consecutive day with its share price gainingalmost 10 percent. Similarly, share of National Hydro Developers Ltd ralliedmore than 9 percent. Other top gaining stocks include Mithila Laghubitta BikasBank Ltd, Samata Microfinance Bittiya Sanstha Ltd and NLG Insurance CompanyLtd.

On the contrary, share price of EverestBank Ltd (Convertible Preference Share) declined the most. Its share pricedropped over 9 percent. Further, NIBL Pragati Fund unit price was down 5.9percent. Kanchan Development Bank Ltd and NMB Sulav Investment Fund-1 alsoplunged 3.78 percent and 3.64 percent, respectively.

On announcements, Shree InvestmentFinance Company Ltd has called for its Annual General Meeting (AGM) on July 6.The finance company has proposed 26.57 percent bonus shares to itsshareholders. Furthermore, Manjushree Finance Company Ltd is holding its AGM onJuly 4. Issuance of 5.71 percent bonus shares is one of the agendas of the AGM.

As per the ARKS technical analysismodel, the stock market witnessed a slight correction with the formation of abullish candlestick after two days of losses. The index is hovering between thesupport and resistance of 1,200 points and 1,300 points, making movementtowards either direction likely.

Following today's gain, RelativeStrength Index (RSI) bounced slightly from the oversold zone while MovingAverage Convergence/ Divergence (MACD) continued to slope downwards. Thisindicates that the market is still lacking a significant thrust to enter into aprolonged uptrend.

Source: MyRepublica, 11^thJune 2018