Nepse snaps losing streak

KATHMANDU, June 12: Stocks opened Tuesday's trading on a positive note with the Nepal Stock Exchange (Nepse) index adding more than 5 points in the initial hour. However, the benchmark index pulled back in the afternoon to dip below the opening level. The index wavered along the opening level for the remaining trading hours to close the day almost unchanged at 1,275.98 points. The exchange witnessed a marginal gain of 0.17 points on the day.

Nepse snapped its five-day losing run as the index closed essentially unchanged in the session providing some respite to investors. However, the index is yet to show any notable sign of recovery as the market continues to see series of lackluster sessions. Trading remained relatively thin as only Rs 481 million worth of securities changed hands on the day.

Sectors showed modest moves toward either side of the spectrum. Trading sub-index, however, jumped up by 3.14 percent. Meanwhile, sub-indices of Hydropower, Microfinance, Banking, Development Bank and Mutual Fund segments logged modest gains. On the other hand, Non-life insurance stocks struggled with their sub-index going down by 0.88 percent. 'Others' sub-index was also down by 0.71 percent. All other sectors ended the day in red.

Shivam Cements Ltd led the list of companies in terms of turnover with total transactions worth Rs 37 million. NIC Asia Bank Ltd, Agriculture Development Bank Ltd and Nepal Bank Ltd were next on the list with turnover of Rs 27 million, Rs 25 million and Rs 24 million, respectively. Other commercial bank scrips were also actively traded on the day.

Energy stocks dominated the list gaining securities on the day. Share prices of Panchthar Power Company Ltd and Khanikhola Hydropower Company Ltd rallied by over 9 percent each. Similarly, Synergy Power Development Ltd and Mountain Hydro Nepal Ltd logged gains of over 7 percent each. Other gaining stocks include Ngadi Group Power Ltd, Bishal Bazar Company Ltd and Dibyashwori Hydropower Ltd.

In contrast, Nepal Hydro Developers Ltd came under the hammer giving up almost 10 percent on its share price. Shares of World Merchant Banking & Finance also tanked over 5 percent. Share prices of Guheshowari Merchant Bank & Finance Co Ltd, Suryodaya Laghubitta Bittiya Sanstha Ltd and United Modi Hydropower Ltd were also down by over 4 percent each.In corporate space, Radhi Bidyut Company Ltd has proposed to distribute 10 percent dividend -- five percent bonus shares and 5 percent cash payout -- to its shareholders from the profit earned in Fiscal Year 2017/18. Similarly, Sagarmatha Insurance Company Ltd has fixed June 16 as its book closure date for its upcoming Annual General Meeting (AGM). The meeting is due to approve the decision to distribute 86 percent bonus shares.

ARKS technical analysis indicates the market forming a doji candlestick on the daily timeframe, reflecting lack of conviction in the secondary market. Slumps seen in technical indicators like Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest that further dip is probable in the local bourse. Falling volumes also indicate that a substantial rebound is less likely at the current juncture.