Daily Market Commentary

Nepse ends in green for second consecutive day

Published On: March 7, 2019 10:13 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU: The Nepal Stock Exchange (Nepse) index traded flat for the first half of the trading session on Wednesday. After hovering around 1,100 points mark in the morning, stocks witnessed a surge late in the afternoon, which pushed the benchmark index 9.12 points higher. Nepse closed the day at 1,111.76 points. 

Following the strength seen among Nepalese stocks, Nepse extended its gains to two straight trading sessions. Nonetheless, the market continued to post modest daily turnover. Only Rs 224 million worth of shares changed hands on the day as investors kept close eyes on the crucial 1,100 points mark before participating in the market actively. 

The day's broad rally saw all the sectoral indices close higher. Biggest gains came from Life Insurance stocks as the group's sub-index rallied 1.7 percent. Considerable strength was also visible among Hotels, Microfinance and Non-Life Insurance scrips. The respective sub-indices jumped over 1 percent each. 

Similarly, sub-indices of Banking, Development Bank and Finance stocks posted gains of around 0.7 percent each. Besides, all other sub-indices closed marginally higher. 

Shares of Nepal Credit and Commercial Bank Ltd witnessed the highest transaction of the day. More than Rs 14 million worth of the bank's shares were exchanged. Next, Nepal Bank Ltd registered a total turnover of over Rs 13 million. Furthermore, Nepal Life Insurance Company Ltd and NMB Bank Ltd registered turnovers of Rs 11 million apiece. NIC Asia Bank Ltd, Nabil Bank Ltd and Janata Bank Nepal Ltd Promoter Share followed suit. 

Among advances, Hathway Finance Company Ltd and Kanchan Development Bank Ltd turned in some of the best performances of the day as both scrips shot up by more than 8 percent. Other gainers of the day include Rairang Hydropower Development Company Ltd, Nepal Seva Laghubitta Bittiya Sanstha Ltd, Summit Microfinance Development Bank Ltd and Nadep Laghubitta Bittiya Sanstha Ltd which rose over 5 percent each. 

In contrast, Ghalemdi Hydro Ltd's stocks suffered the most and closed over 6 percent lower. Green Development Bank Ltd followed suit as it saw its share price sink almost 2 percent. Besides, NIBL Pragati Fund, Kalika Laghubitta Bittiya Sanstha Ltd, Central Finance Co Ltd and Nepal Community Development Bank Ltd registered declines of over 1 percent each. 

In the news, Mithila Laghubitta Bittiya Sanstha Ltd, which is floating 50 percent right shares to its shareholders, has extended its closing date by 7 days. The issuance will now be applicable till March 13 instead of March 6.

As per the ARKS technical analysis, the market formed a bullish candlestick on the daily timeframe indicating some signs of recovery. Following a rebound from 1,100 points in the day earlier, the equity index extended its gains on Wednesday. Momentum indicators also suggest bearish sentiment easing slightly of late. 

Nonetheless, conclusion about the possible direction of the bourse cannot be drawn unless the index sees a surge breaking the immediate resistance of 1,125 points or a slump below 1,100 points mark with substantial volume. 

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)

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