daily market commentary

Nepse snaps four-day losing streak

Published On: October 3, 2018 09:41 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Oct 3: Nepal Stock Exchange (Nepse) index posted a marginal gain on Tuesday to end four-day losing run. The index traded higher in the initial trading hour, adding 9 points. Though the index pulled back in the remaining session, it managed to close 2.69 points higher at 1,241.36 points. 

On the day, the Nepse index recouped some of its previous day's losses. Nonetheless, the market activity dropped to Rs 455 million from Monday's turnover of Rs 540 million.

Market sub-indices move towards both sides of the spectrum. Among the gainers, significant strength was visible among 'Others' stocks. The group's sub-index surged by 1.06 percent. Sub-index of Trading segment closed 0.75 percent higher on the day. Life Insurance sub-index advanced by 0.26 percent, while Non-life Insurance sub-index posted a gain of 0.21 percent. Banking and Microfinance sub-indices also edged higher. 

On the contrary, sub-index of Manufacturing & Processing stocks struggled and closed 0.24 percent lower. Further, Hydropower sub-index also saw its value do down by 0.21 percent.

In terms of turnover, Global IME Bank Ltd led the list of companies with Rs 36 million worth of shares traded. Shares of Sanima Mai Hydropower Company Ltd also remained active on the day as over Rs 29 million worth of the hydropower developer's shares changed hands. The company has declared 10 percent bonus shares and 5 percent cash dividend from the net profit of Fiscal Year 2017/18. The decision is awaiting approval from the company's annual general meeting (AGM) scheduled for October 25. Likewise, Machhhapuchhre Bank Ltd and Prabhu Bank Ltd posted turnover of Rs 21 million and Rs 19 million, respectively. 

Nadep Laghubitta Bittiya Sanstha Ltd led the list of advances as its share price rallied 9.92 percent. Correspondingly, share price of NMB Microfinance Bittiya Sanstha Ltd and Mahuli Samudayik Laghubitta Bittiya Sanstha Ltd surged by 5.2 percent and 4.55 percent, respectively. Dev Bikas Bank Ltd, Kanchan Development Bank Ltd, Mirmire Laghubitta Bittiya Sanstha Ltd were the other top gaining stocks of the day.

Bhargav Bikas Bank Ltd, on the other hand, was the worst performer of the day as its share price tumbled 9.35 percent. Likewise, Shine Resunga Development Bank Ltd and Janaki Finance Ltd shed 4.47 percent and 3.88 percent, respectively, on their share prices. Further, share prices of United Insurance Co Nepal Ltd, Tinau Development Bank Ltd and Jebils Finance Ltd slid over 3 percent each.

On corporate front, Hamro Bikas Bank Ltd has declared 2.4 percent bonus shares and 7.91 percent cash dividend to its shareholders from its earnings of Fiscal Year 2017/18.

As per the ARKS technical analysis, the market posted gain after four days with the formation of a small bullish candlestick. Following the recent downturn, the market has lost some momentum with the technical indicators, suggesting further downward movement. The index has also dropped slightly below its 50 day Exponential Moving Average (EMA). Nonetheless, the index is still trending above its immediate support at 1,234 points which indicates that the overall market sentiment will remain fairly bullish.

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)

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