Laxmi Capital News
Nepse ends lackluster session in the red

 Stocks remained essentially flat during the firsthalf hour of Sunday's trading session. However, after a continuous decline ofNepal Stock Exchange (Nepse) index in the following trading hours, the indexclosed the bland session 14.07 points lower at 1,233.23 points. Subsequently,the total turnover stayed well below par amounting to Rs. 245 million.

Stocks failed to hold on to previous gains in the firsttrading day of the week. As a result, the Nepse index wiped out all theadvances witnessed in the last two trading sessions. Overall, the market is yetto recover from the bearish sentiment as no major events or news have been ableto derail the current downtrend.

All major Sub-Indices declined on Sunday barring the HotelsSub-Index. Hydropower stocks logged in the biggest decline with its Sub-Indexdropping 1.74 percent. Moreover, Sub-Indices of Others and Microfinance stockslost 1.26 percent and 1.25 percent, respectively. Banking Sub-Index also fell1.19 percent on the day.

Shares of Grameen Bikas Laghubitta Bittiya Sanstha Ltd wasthe most active stock for the day as Rs. 22 million worth of its sharesexchanged hand. Besides, shares of United Microfinance Bittiya Sanstha Ltd andNepal Merchant Bank Ltd recorded total transactions of over Rs. 19 millioneach. Nepal Bank Ltd scrips were also active on the day with a turnover of overRs. 13 million. The bank has received the approval from Securities Board ofNepal (Sebon) on Sunday to issue its Further Public Offering (FPO) of over 17million shares at the unit price of Rs. 280.

RadhiBidyut Company Ltd's stocks led the list of advancesas its stock price climbed to the upper circuit level of 10 percent. Mainlymicrofinance companies were among other top gainers. Shares of SamataMicrofinance Bittiya Sanstha Ltd, Unnati Microfinance Bittiya Sanstha Ltd andSupport Microfinance Bittiya Sanstha Ltd surged 9.98 percent, 8.75 percent and5.87 percent, respectively.

On the contrary, shares of Prime Life Insurance Company Ltdwere the biggest drag for the day as it shed 6.79 percent. Secondly, NMB BankLtd plunged 4.57 points. The scrip has been declining since the announcement ofits on-going FPO. Kamana Microfinance Bittiya Sanstha Ltd and Nepal Bank Ltdalso witnessed their share prices drop over 4 percent.

In the corporate space, Sindhu Bikas Bank Ltd has proposed5.95 percent bonus shares to its shareholders, after which the bank will reachthe capital requirement mark of Rs. 50 crore.

ARKS technical analysis model indicates the formation of abearish candle pulling the index back towards the psychological support of1,200 points. Relative Strength Index (RSI) is hovering just above the oversoldzone suggesting the market momentum favoring the bears.

Moving Average Convergence/ Divergence also indicates thatthe market is still in a prolonged downtrend. If the index continues itsdownfall, the index movement around the 1,200 points mark is likely to presenta possible direction of the market.

Source: MyRepublica, 18th June 2018

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