Daily Commentary: Nepse closes on a meager increment

Published On: August 13, 2020 09:31 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Aug 13: Stocks began Wednesday’s trading on a negative note as the Nepal Stock Exchange (Nepse) index dropped 10 points in the initial trading hours. Later on, the market tried to recoup its losses but it failed to sustain its quick recovery.

The market then traded on a lower note for the latter trading session before pulling back slightly higher towards the end. At the end, the benchmark index added 1.51 points to close at 1425.32 points.

Following the volatile market, the bourse observed lower volume compared to the proceeding day by 25 percent. The market recorded the total turnover of Rs 951 million on the day.

Among sub-indies, Banking, Hotels, Non-Life Insurance, Manufacturing & Processing, Life Insurance and Mutual Fund ended the day on a meager increment. On the other hand, the Trading, Development Bank, Hydropower, Finance, Others and Microfinance sub-indices saw minimal decline.

United Insurance Co. Nepal Ltd andNepal Reinsurance Company Ltd shares recorded the biggest turnover of the day with over Rs 60 million each worth of the shares changing hands. Nepal Life Insurance Company Ltd, NIC Asia Bank Ltd and Ajod Insurance Ltd registered the turnovers of Rs 47 million, Rs 38 million and Rs 32 million, respectively. Similarly, Insurance stocks Prabhu Insurance Ltd and Shikhar Insurance Co. Ltd traded over Rs 30 million apiece.  Asian Life Insurance Co. Ltd, Nepal Bank Ltd and Himalayan Distillery Ltd were among other actively traded shares.

In terms of gainers, Sadhana Laghubitta Bittiya Sanstha Ltd and Ghalemdi Hydropower Ltd share prices surged by 9.89 percent and 9.26 percent correspondingly. Likewise, IME General Insurance Ltd recorded gains of 3.56 percent on its share price. Similarly, shares of United Insurance Co. Nepal Ltd, Nepal Bangladesh Bank Ltd, United Finance Ltd, Prabhu Insurance Ltd, Oriental Hotels Ltd, Ngadi Group Power Ltd, Sanima Mai hydropower Ltd and NLG Insurance Company Ltd jumped over 2 percent each.

On contrary, Union Hydropower Ltd, Ankhu Khola Jalabidhyut Company ltd and Nepal Finance Ltd shares suffered the most by losing 6.45 percent, 5.56 percent and 4.35 percent respectively. Guheshowori Merchant Bank & Finance Co. Ltd, Gurans Laghubitta Bittiya Sanstha Ltd, Pokhara Finance Ltd and Mithila Laghubitta Bittiya Sanstha Ltd shares struggled and closed over 3 percent each.

Among companies publishing their fourth quarter financials of the year 19/20, Nagbeli Laghubitta Bittiya Sanstha Ltd reported an increment in its net profit by 11.6 percent. Its net profit stands for the year at Rs 39.6 million. Similarly, Sanima Life Insurance Company Ltd reported a slight decline in its earnings by 4.25 percent and the company’s net profit stands at Rs 85.3 million.

In terms of ARKS technical analysis, the market formed a doji candlestick on the daily timeframe reflecting an indecision in the market.  Technical indicators like Relative Strength Index (RSI) and Moving average Convergence/ Divergence (MACD) suggest neutral momentum in the market. However as long as the market traded above its psychological support level of 1400 points, the market will remain on an upper trend.

This column is produced by ARKS Capital Advisors Ltd

(Views expressed in the article are those of the producer and do not necessarily reflect those of this publication)





Leave A Comment