Nepal Stock Exchange(Nepse) index saw a marginal decline of 1.93 points to close at 1,239.26 pointson Tuesday. Though the initial slump was followed by midday recovery, itreflects a lack of conviction.

Thestock market failed to hold on previous day's gains as uncertainty about thedirection of the market still looms large among investors. Hence, the totalturnover also dropped by 31.22 percent compared to the previous day. A total ofRs 302 million worth of shares were traded on the day.

Sub-indicesturned in mixed performance on Tuesday. Finance Sub-Index edged up 0.35 percentand the sub-indices of Manufacturing & Processing and Insurance sector alsoended the day higher. However, Hotel stocks were under pressure as reflected bya 0.78 percent decline in Hotel Sub-index. Banking Sub-index also shed 0.28percent. Furthermore, the sub-indices of Hydropower, Microfinance andDevelopment Bank also ended in red.

Interms of market activity, shares of Nepal Life Insurance Company Ltd recordedthe highest turnover of over Rs 23 million. Best Finance Company Ltd (PromoterShare) was second with total transactions of over Rs 15 million. Next on thelist were shares of Mega Bank Ltd, Nepal Telecom Ltd and Sana Kisan Bikas BankLtd.

UnnatiMicrofinance Bittiya Sanstha Ltd secured its place as the top gainer for thirdstraight day row. Its share price leapt by almost 10 percent. Similarly, sharesof RadhiBidyut Company Ltd went up by over 7 percent. Ngadi Group Power Ltd,Mero Microfinance Bittiya Sanstha Ltd and JalabidyutLaganiTatha Bikas Co Ltdalso saw their share prices rise by about 4 percent each.

Conversely,Kabeli Bikas Bank Ltd was the worst performer of the day as its share pricefell by over 6 percent. Shares of Arun Valley Hydropower Development Co Ltd wentdown by 5.95 percent. Everest Bank Ltd (Convertible Preference Share) continuedits decline, dropping over 3 percent.

Incorporate news, RSDC Laghubitta Bittiya Sanstha Ltd is due to issue 60 percentright shares to its shareholder from July 1. Further, Siddhartha Insurance Ltdis also set to launch 35 percent rights issue from the same date. The paid upcapital of the companies will reach Rs 576 million and Rs 864 million,respectively, after the rights issue.

ARKStechnical analysis model indicates a small bearish candlestick formation ondaily timeframe. Hence, the index hasn't shown any movement on Tuesday'strading session. The index is trading way below 20-day and 5-day exponentialmoving average (EMA), indicating a short-term downtrend in action.

RelativeStrength Index (RSI) remained close to the oversold territory as sellingpressure is yet to ease off. Further, Moving Average Convergence/Divergence(MACD) continued its fall to the negative territory, indicating continuation ofbearish momentum. Hence, if the market falls further, there is a possibility ofthe Nepse index testing the support level of 1,200 points.

Source:MyRepublica, 13^th June 2018