Daily market commentary

At the end of fiscal year, Nepse closes on a positive note

Published On: July 17, 2019 08:16 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU: The benchmark Nepal Stock Exchange (Nepse) index opened on a high note in the first trading hour. However, it failed to hold its gains for a longer period. The index then, traded flat in the last trading session to close the day with a moderate gain of 4.45 points. Nepse ended Tuesday's trading at 1259.01 points. 

With the end of fiscal year, the index continued to post sideways movement. The bourse is yet to see any major moves towards either side of the spectrum with the market posting a series of relatively low turnover sessions. 

On Tuesday, the market posted a total turnover of Rs 347 million against Rs 430 million in the session earlier. 

All major sectors closed in the green. Biggest gains came from Mutual Fund and Hotels segments with the respective sub-indices rising 4.98 % and 2.71 %. 

Similarly, sub-indices of Finance, Microfinance, Banking, Development Bank, Others, Manufacturing & Processing, Non-Life Insurance, Hydropower and Life Insurance sub-indices closed the day with a meager increment. 

Shares of Nepal Bank Ltd and Nepal Life Insurance Co Ltd Promoter led the list of top turnovers on the day. More than Rs 57 million and 34 million, respectively worth of the shares changed hands. 

Likewise, Nabil Bank Ltd, Shivam Cements Ltd and National Life Insurance Co Ltd posted turnovers of over Rs 20 million, 14 million and 12 million correspondingly. Civil Bank Ltd, First Microfinance Development Bank Ltd, Nepal Investment Bank Ltd were also actively traded in the day.

Among advances, Nabil Equity Fund units rise up by 9.12% followed by Civil Laghubitta Bittiya Sanstha which rallied 8.82%. Furthermore, unit's shares of Citizens Mutual Fund-1 and NMB Hybrid Fund L-1 posted gains of 8.3% and 7.85% respectively. Other gaining scrips include Arun Kabeli Power Ltd, Rastriya Beema Company Ltd Promoter Shares and Grameen Bikas Laghubitta Bittiya Sanstha Ltd.

On the other hand, Ankhu Khola Jalabidhyut Company Ltd registered the worst performance of the day as it share price fell over 4.16%. Next on the list, shares of Ridi Hydropower Development Company Ltd followed with a 3.22% decline. Shares of Swarojgar Laghu Bitta Bikas Bank Ltd, First Microfinance Development Bank Ltd and Sanima Mai Hydropower Ltd fell over 2% each. 

In the news, Sabaiko Laghubitta Bittiya Sanstha Ltd has issued 5, 30,000 units of Initial Public Offering (IPO) shares from July 17. The closing date of the IPO is on July 21.

ARKS technical analysis indicates that the index has continued to trade range bound in the crucial 1,240 – 1,270 points range. Hence, the breakout and close outside of this range with significant volume might indicate the possible direction of the index. 

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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