Daily Market Commentary

Nepse ends week on a high note

Published On: March 15, 2019 08:40 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, March 15: Stocks struggled in early trading session on Thursday as the Nepal Stock Exchange (Nepse) 7 points by midday. However, the index recovered its initial losses later in the afternoon posting a gain of 5.40 points to close the week at 1,155.50 points.

The benchmark index recouped some of the some of the corrections of the previous day as buyers continued to dominate the bourse. The market also seemed optimistic as Securities Board of Nepal (Sebon) loosened a provision of mandatory requirement of Permanent Account Number (PAN) for stock investors. Issuing a press release on Thursday, the stock market regulator said that PAN number will be mandatory for only those investors who trade in excess of Rs 500,000 in a single transaction. The rule is due to be enforced from April 14 i.e. the beginning of Nepali New Year 2076. Meanwhile, the bourse recorded a total transaction of over Rs 485 million.

Among traded sectors, most of the sub-indices ended the day in green with maximum gains coming from Hotels stocks. The group’s sub-index jumped up by 2.34 percent driven by gains coming from Soaltee Hotel Ltd. Development Bank sub-index also posted a gain of 1.56 percent. Next, the sub-index of Finance groups closed 0.83 percent higher. Similarly, the sub-index of heavyweight Banking sectors also edged higher with an advance of 0.46 percent.

In terms of turnover, promoter shares of National Life Insurance Company Ltd registered the highest turnover of over Rs 210 million which accounted for over 40 percent of the total market activity. Next on the list was Nepal Credit and Commercial Bank Ltd with over Rs 19 million worth of shares traded, followed by National Life Insurance Company Ltd with turnover of over Rs 15 million. Besides, Upper Tamakoshi Hydropower Ltd and Nepal Life Insurance Company Ltd posted turnover of over Rs 13 million each.

In terms of advances, share prices of Tinau Development Bank Ltd and United Finance Ltd surged to hit the upper circuit of 10 percent. Energy stocks ensued, as Rairang Hydropower Development Company Ltd and Synergy Power Development Ltd logged gains of 6.38 percent and 4.95 percent, respectively. Sanima Equity Fund, Asha Laghubitta Bittiya Sanstha Ltd and Mission Development Bank Ltd were among other top gainers of the day. 

On the other hand, Ridi Hydropower Development Company Ltd posted the biggest loss of the day. It’s share price tanked by over 6 percent. Likewise, Nepal Hydro Developers Ltd and NIBL Samriddhi Fund 1 witnessed declines of over 4 percent each. Other losing scrips include, Civil Laghubitta Bittiya Sanstha Ltd, Vijaya Laghubitta Bittiya Sanstha Ltd and Mahila Sahayatra Microfinance Bittiya Sanstha Ltd which posted loss of over 3 percent each.

On corporate space, Sebon has approved Grameen Bikas Laghubitta Bittiya Sanstha Ltd’s proposal to launch 50 percent right shares issue. Following capitalization of the right shares, the paid-up capital of the micro sector lender will cross Rs 982 million.

The benchmark index, as per the ARKS technical analysis, formed a bullish candlestick on the daily timeframe as the index rebounded from the 1,150-point level. Moreover, the index trending above its 50-day Exponential Moving Average (EMA) suggests a short-term uptrend in action. Hence, a further breakout of the 1,160-point mark might see the index post another rally in the coming sessions.

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


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