Laxmi Capital News
Nepse wipes out two-day gains

Stocks suffered on Monday afterposting two straight days of marginal gains as the Nepal Stock Exchange (Nepse)index was down 10 points, or 0.80 percent, at the close. The benchmark indexfinished the day at 1,210.09 points.

Trading activity remained subduedwith the equity market experiencing a decline in turnover to Rs 185 millioncompared to the Rs 209 million on Sunday. Sluggishness prevailed throughoutMonday. The market has been witnessing some of the dullest trading sessions ofthe year lately. 

Most of the sectoral indicesfinished the day in red. Substantial weakness was visible among insurancestocks which dragged Insurance Sub-index down by 1.29 percent. Hydropowerstocks were also under pressure as reflected by a decline of 1.14 percent in itssub-index. Only two sub-groups outperformed the broader market as Hotels andManufacturing/Processing Sub-Indices posted modest gains.

The most actively traded stock onthe bourse on Monday was Samata Microfinance Bittiya Sanstha Ltd, posting atotal turnover of above Rs 8 million. Monday was the last trading day for theshares of the microfinance company which is launching 50 percent rights issueon July 11. Besides, mainly banking stocks remained active on the day. Amongother, stocks of Nepal SBI Bank Ltd and Nepal Bangladesh Bank Ltd recordedturnovers of more than Rs 6 million each. 

In terms of advances, shares ofKhani Khola Hydropower Co Ltd was the top gainer as it recovered over 5 percentafter reaching an all-time low closing on Sunday. Further, Nepal SevaLaghubitta Bittiya Sanstha Ltd and Hathway Finance Company Ltd saw their shareprices surge over 4 percent each. 

Meanwhile, Jebils Finance Ltd wasthe biggest drag, as its saw its share price tumble by 7.41 percent. With thefall, the company's stock price has fallen to the face value of Rs 100.Similarly, shares of Nepal Community Development Bank Ltd nose-dived 7.38percent. Among others, shares of Nagbeli Laghubitta Bikas Bank Ltd, ShangrilaDevelopment Bank Ltd and Barun Hydropower Co Ltd also closed lower.

On announcements, KamanaSewaBikas Bank Ltd has scheduled its annual general meeting (AGM) for July 16.Distribution of 5.50 percent bonus shares and 6.50 percent cash dividend is oneof the key agendas for the meeting. In the other news, Nagbeli LaghubittaBittiya Sanstha Ltd is closing book for its 100 percent rights issue on July 5.

ARKS technical analysis indicatesthat the market will continue its course of decline with the formation of abearish candlestick on Monday. The market is still guided by the recentindecision seen among investors. With the current descent, the RelativeStrength Index (RSI) has now entered the oversold zone suggesting notableweakness in the equity market. Moving Average Convergence/Divergence (MACD)also reinforces RSI's indication as its line remains firmly in the negativeterritory. Further extension of the trend will likely see the index testing thepsychological support of 1,200 points.

Source:MyRepublica, 26th June 2018

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