Daily Commentary: Nepse snaps three days’ gaining run

Published On: July 8, 2020 05:08 PM NPT By: Republica  | @RepublicaNepal

Nepse benchmark index falls 10 points 

KATHMANDU, July 8: Stocks began Wednesday’s trading on a negative note as the Nepal Stock Exchange (Nepse) index dropped 17  points in the morning before pulling back in the positive territory. 

However, the market failed to sustain its quick recovery. Another wave of selling pressure pulled the stock market back to red territory by the mid-day trading. Following a steady decline to the end, Nepse benchmark index fell 10.13 points to close the trading day at 1326.53 points.

Although the Nepse index ended the trading on a lower note, the total turnover of the bourse crossed Rs 1 billion mark.

Majority of the sectors ended in the negative zone except Trading and Mutual Fund index. Both the sub-index went up by 1% each. 

On the other hand, Hotels sectors was the worst performer of the day, registering a loss of 2.72%. Further, Banking, Development Bank,Hydropower, finance, Non-Life Insurance, Manufacturing & Processing, Others, Microfinance and Life Insurance sub-indices posted marginal losses.

Shares of Nepal Reinsurance Company Ltd led the list of active stocks. Over Rs 255 million worth of the reinsurance company’s shares changed hands. Similarly, Nepal Life Insurance Company Ltd and Prabhu Bank Ltd Promoter Share registered a transaction of Rs 71 million and Rs 63 million respectively.  Likewise, NMB Bank Ltd, Chhimek Laghubitta Bikas Bank Ltd, Himalayan distillery Ltd logged in transactions of Rs 44 million, Rs 39 million and Rs 32 million, respectively.  Sana Kisan Bikas Bank Ltd, Shivam Cements Ltd, Nabil Bank Ltd and Neco Insurance Company Ltd were among other active stocks of the day.

Even when the benchmark index ended in a negative territory, Suryodaya Laghubitta Bittiya Sanstha Ltd stood as the biggest gainer for the day as its share price rallied 9.88%.  Asha Laghubitta Bittiya Sanstha Ltd and Himalayan General Insurance Co. Ltd share price shot up by 7.54% and 6.22% correspondingly. Tinau Mission Development Bank Ltd and Corporate Development Bank Ltd climbed more than 5% each. Meanwhile, Nepal Reinsurance Company Ltd and Samudayik Laghubitta Bittiya Sanstha Ltd closed the day with a share price increment of 4.96% and 4.65% respectively.

On the contrary, Taragaon Regency Hotel Ltd, the worst performer of the day, tumbled 6.98%. Likewise, Kalika Power Company Ltd, National Hydro Power Company Ltd, Hydroelectricity Investment and Development Company Ltd and Pokhara Finance Ltd also came under pressure as their share lost their value by over 5%. 

Shares of Karnali Development Bank Ltd, Vijaya Laghubitta Bittiya Sanstha Ltd, Soaltee Hotel Ltd, Gurans Life Insurance Company Ltd also fell.

In terms of ARKS technical analysis, the market formed a bearish candlestick on the daily frame after the three straight days of continued rally. 

A slight correction came on Wednesday’s trading. However, the market position seems to remain on a bullish side. A breach of the resistance with notable volume can see the index make further steps toward upside where it might face the resistance at around 1,350-1360 points mark. 

On the other side, an immediate psychological support lies at 1,300 points mark.

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)


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