KATHMANDU, July 7: The stock market ended the week with solid gains. Though the benchmark Nepal Stock Exchange (Nepse) index lost 19 points over first two trading days of the week, it bounced back in the mid-week to close the remaining three trading days in green. At the end of trading week, Nepse closed at 1,224.41 points, 25.87 points higher compared to last week.
Consequently, the stocks posted weekly gain after ending in loss for eight straight weeks. This gain is mainly attributed to the Thursday's rally of over 36 points which came as investors are expecting upcoming monetary policy to ease margin lending restrictions.
Total weekly turnover also saw a rise of over 28 percent, with Rs 1,337 million worth of shares changing hands. Sensitive Index, which measures the performance of Class 'A' stocks, also rose 5.37 points, or 2.13 percent, to end the week at 257.46 points.
All major sub-indices, except Trading, and Manufacturing & Processing, ended the week in green. Insurance, Hotels and Microfinance sub-indices posted gains of 4.06 percent, 3.84 percent and 3.68 percent, respectively. Banking Sub-index also posted a moderate gain of 1.75 percent.
In terms of market activity, shares of National Life Insurance Company Ltd logged highest weekly turnover of over Rs 74 million ahead of its book closure for 60 percent rights issue. It was followed by Prime Commercial Bank Ltd and Nepal Investment Bank Ltd with total transactions of Rs 43 million and 40 million, respectively. Further, Chhimek Laghubitta Bikas Bank Ltd and NABIL Bank Ltd Promoter Shares were the other active stocks in the week.
More than 11 million units of shares of six companies were listed on the exchange for trading this week. The major listings include 6.53 million units of right shares of Deva Bikas Bank Ltd and 3.78 million units of bonus shares of Om Development Bank Ltd.
On corporate front, allotment of 480,000 units of shares of NADEP Laghubitta Bittiya Sanstha Ltd was concluded this week. After the allotment, the company's paid-up capital has reached Rs 160 million. Furthermore, Shree Investment & Finance Company Ltd convened its Annual General Meeting (AGM) on Friday. Issuance of 26.57 percent bonus shares was one of the agendas of the meeting.
As per the ARKS technical analysis, the index staged a recovery, closing above 1,200-point level. With the surge, the index crossed its 20-day Exponential Moving Average (EMA). Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are also showing signs of revival. However, for the market to revert from the current downtrend, the index must continue its rally in the coming week with significant turnover.
This column is produced by ARKS Capital Advisors Ltd www.arkscapitaladvisors.com
(Views expressed are those of the producer and do not necessarily reflect those of this publication)