Daily Market Commentary

Nepse closes higher for second straight day

Published On: December 5, 2018 10:05 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU: Stocks traded flat in early trade on Tuesday. However, the benchmark Nepal Stock Exchange (Nepse) index moved slightly to the upside on midday and continued to maintain positive bias throughout the session eventually posting a gain of 10.27 points to close at 1,142.01 points.

Following the day's progress, Nepse closed in the green for two consecutive sessions. The stock market recorded a total turnover of Rs 382 million.

Majority of sub-indices posted ended the day in green following the broader market. 'Others' and Development sectors were the major contributor to Nepse's gain with their sub-index rising by over 2 percent each. Banking and Hydropower stocks also logged gains of 0.73 and 0.64 points, respectively. Microfinance, Finance, Life Insurance and Non-Life Insurance stocks followed suit with their sub-indices closing slightly higher. In contrast, Trading and Hotel sub-indices ended the day lower.

In terms of turnover, Nepal Bank Ltd posted the highest turnover for the third consecutive day. More than Rs 114 million worth of the bank's shares changed hands on the day. Next on the list was Global IME Bank Ltd with turnover of Rs 33 million. The bank declared 16 percent bonus shares to its shareholders on Tuesday. The announcement, however, is subject to approval from the Nepal Rastra Bank and upcoming annual general meeting of the company. After the issue, the paid-up capital of the company will reach Rs 10 billion. NMB Bank Ltd, NIC Asia Bank Ltd, and Nepal Life Insurance Company Ltd were the other active stocks of the day.

Laxmi Laghubitta Bittiya Sanstha Ltd was the biggest gainer of the day as its share price surged by almost 10 percent. Rairang Hydropower Development Company Ltd also posted a significant move to the upside with its share price going up by 5.83 percent. Similarly, share price of Swadeshi Laghubitta Bittiya Sanstha Ltd also advanced by 4.46 percent. Swabalamban Laghubitta Bittiya Sanstha Ltd, Sunrise Bank Ltd and Radhi Bidhyut Company Ltd were among other top gainers, logging gains of over 3 percent each.

Mahila Sahayatra Microfinance Bittiya Sanstha Ltd turned logged the worst performance of the day as its share price tanked by almost 10 percent. Global IME Laghubitta Bittiya Sanstha Ltd's stocks also struggled and lost 5.05 percent. Furthermore, Support Microfinance Bittiya Sanstha Ltd, Arambha Microfinance Bittiya Sanstha Ltd and Nadep Laghubitta Bittiya Sanstha Ltd posted loss of over 4 percent each.

On announcements, Nabil Bank Ltd has announced 12 percent bonus shares and 22 percent cash dividend to its shareholders. The decision is yet to be approved by the company's annual general meeting (AGM) and Nepal Rastra Bank (NRB). After the issue, the paid-up capital of the bank will reach Rs. 9.008 billion.

ARKS technical analysis indicates the market forming a bullish marubozu candlestick on Tuesday following the day's gains. Nonetheless, Moving Average Convergence Divergence (MACD) still trending in the negative territory and Relative Strength Index (RSI) also looking down suggest that the market is yet to see a significant shift in momentum. Hence, the investors are suggested to be cautions before taking any decisions in the present context.

This column is produced by ARKS Capital Advisors Ltd
(Views expressed are those of the producer and do not necessarily reflect those of this publication)

Leave A Comment