NEPSE Gives Up Nearly a Third of Recent Gains

Nepal’s stock market closed lower for a third time in four trading days on Thursday, January 29, with the benchmark index shedding 0.64 percent, or 17.53 points, to end at 2,714.05.

The decline followed a mixed performance earlier in the week. The index rose 0.18 percent on Wednesday after surging 2.12 percent to a recent high of 2,772.17 on Sunday. A mild correction of 0.11 percent on Monday was followed by a sharper 1.53 percent fall on Tuesday.

Between January 26 and 29, the market closed in the red on three days, losing a cumulative 58.12 points. The pullback has erased 30.43 percent of the gains recorded during the rally between December 23 and January 25.

On December 23, the index closed 0.12 percent, or 3.27 points higher at 2,584.49, snapping a three-day losing streak. It, then, gained steam, climbing to 2,772.17 on January 25. Over those 19 trading sessions, the market advanced 190.96 points, ending higher on 13 days.

Thursday’s candlestick pattern, characterised by a medium red body with a long upper wick and a short lower tail, suggested that the market is consolidating near a support zone, analysts said.

Market breadth remained negative, with 170 securities declining, 85 advancing and five remaining unchanged. All major sub-indices closed lower. The Sensitive Index fell 0.34 percent, the Float Index dropped 0.67 percent, and the Sensitive Float Index declined 0.47 percent.

Trading activity improved from the previous session. A total of 35.48 million shares were traded through 138,883 transactions, generating a turnover of Rs 14.56 billion, up from Rs 11.49 billion on Wednesday.

Himal Dolakha Hydropower Company Limited (HDHPC) was the top gainer, rising 9.23 percent, followed by Shiva Shree Hydropower Ltd (SSHL), which gained 9.19 percent. 

On the downside, Corporate Development Bank Limited (CORBL), Mithila LaghuBitta Bittiya Sanstha Limited (MLBBL) and Saptakoshi Development Bank Ltd (SAPDBL) hit the lower circuit limit.

Ngadi Group Power Ltd (NGPL) led the market in terms of turnover with transactions worth Rs 599.91 million, followed by SY Panel Nepal Limited (SYPNL) and United Modi Hydropower Ltd (UMHL).

Of the 13 sectoral indices, only three closed higher. The Hydropower Index rose 0.38 percent, the Mutual Fund Index gained 0.36 percent and the Investment Index edged up 0.08 percent. The Development Bank Index posted the steepest decline, falling 2.23 percent, followed by the Manufacturing and Processing Index, down 2.12 percent.

Total market capitalisation fell to Rs 4,556.96 billion from Rs 4,586.40 billion on Wednesday.