Theequity market maintained an overall negative bias this week. The Nepal StockExchange (Nepse) index posted losses of more than 8 points in three out of fivetrading days, while the remaining two trading days witnessed gains of less than2 points only. Consequently, the benchmark index ended the week 28.84 pointslower at 1,218.46 points. 

The market extended losses further this week,fueling continuation of the long-term downtrend in action. Stocks made anattempt to consolidate last week. However, amid a lack of any major catalystahead of the new monetary policy and among bland trading sessions, the marketfailed to gain any foothold for recovery.

The exchange witnessed a minimal turnover of Rs.1,123 million – a decline of 34.72 percent compared to a week earlier.Performance of Class 'A' stocks also suffered with the Sensitive Indexdeclining losing points, or 2.31 percent, to finish at 255.75 points.

Weakness was also visible among all sub-indices.Insurance sector turned in the worst performance of the week as its sub-indextumbled 2.79 percent. Hydropower and Microfinance sub-indices followed suitposing loss of 2.6 percent each. The Banking Sub-index fell 2.37 percent.

Nepal Bank Ltd was the most active stock of the weekas investors scrambled to buy its shares after Securities Board of Nepal(Sebon) approved the bank's Further Public Offering (FPO) of over 17 millionunits of shares at Rs 280 per unit on Sunday. Shares worth Rs 73 million of thebank changed hands during the week. Similarly, shares worth Rs 47 million ofMega Bank Ltd were traded in the secondary market this week. Next on the listwas NMB Bank Ltd with Rs 46 million units worth of shares traded. The bank'sFPO of over 11 million units is currently undergoing.

More than 16 million units of shares of variouscompanies were listed for trading in the secondary market this week. Itincludes 397,800 units of bonus shares of Nerude Laghubitta Bittiya Sanstha Ltdand right shares of Asian Life Insurance Co Ltd, Neco Life Insurance Co Ltd, amongothers.

In news, Nepse has published a schedule regardingimplementation of the fully automated online trading system. As per the pressrelease issued by the bourse on Friday, transaction test and user acceptancetest will begin on the first day of next fiscal year i.e. July 17. Hence,access to the online trading platform to general public can be expected soonafter.

As per the ARKS technical analysis, market witnessedextension of the downtrend with the index sliding 2.31 percent this week. Withthe week's decline, the index is trading near the support zone of 1,200 pointsas well as below 20-day and 50-day moving averages (MAs), suggesting thatbearish trend is still predominant in the current scenario.

Source:MyRepublica, 24^th June 2018