Daily Commentary: Nepse suffers marginal decline

Published On: July 29, 2020 09:25 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, July 28: Nepse witnessed a relatively subdued trading on Tuesday. Despite opening higher and gyrating between gains and losses in the morning, stocks remained under pressure throughout the afternoon's session. The Nepal Stock Exchange (Nepse) benchmark index shed 7.59 points to end Tuesday’s trading at 1,454.89 points.

Despite Nepse ending lower for two consecutive weeks, losses have remained marginal. Some indecision still prevails in the bourse as reflected by range bound trading in the last couple of days with dip in trading volume. Hence, the market is likely to extend its sideways theme in the present context. The total turnover of the day stood at Rs 1.25 billion.

On the sectoral front, most of the composite segments ended lower. Only Finance and Mutual Fund sectors managed to end in the positive territory. Notable losses came from Trading and Manufacturing & Processing stocks as the respective sub-indices dropped 1.98 percent and 1.35 percent. Similarly, the Non-Life Insurance sub-index fell 0.85 percent followed by the Development Bank sector which went down 0.67 percent. Heavyweight Banks also gave up 0.53 percent of their value.

Shares of Nepal Reinsurance Company Ltd continued to witness active market participation with over Rs 103 million worth of the scrip being traded on the day. Nepal Life Insurance Company Ltd closely followed with a turnover of Rs 98 million. NMB Bank Ltd, NIC Asia Bank Ltd, Himalayan Distillery Ltd and NIC Asia Laghubitta Bittiya Sanstha Ltd were among other actively traded shares.

Mirmire Microfinance Development Bank Ltd’s share led the list of gaining stocks on Tuesday’s trading. Its share price shot up by 9.94 percent. Following closely, Joshi Hydropower Development Company Ltd surged by 9.09 percent. Similarly, Multipurpose Finance Company Ltd and Himalayan Power Partner Company Ltd’s share prices jumped over 5 percent each. NIC Asia Balanced Fund, Shree Investment Finance Co. Ltd, Ghalemdi Hydro Ltd and Guheshowori Merchant Bank & Finance Co. Ltd were the other gaining stocks.

On the other hand, Pokhara Finance Ltd suffered the most, losing over 5 percent on its price. Next on the list, Nepal Hydro Developers Ltd share price dropped by 3.01 percent. Tinau Mission Development Bank Ltd, Rastriya Beema Company Ltd Promoter Share, Himalayan General Insurance Co. Ltd., Taragaon Regency Hotel Ltd, Grameen Laghubitta Bittiya Sanstha Ltd and Infinity Laghubitta Bittiya Sanstha Ltd were among other major losing securities posting losses of over 2 percent each.

On the technical front, the market formed another small bearish candlestick reflecting slightly bearish sentiment on the daily timeframe. While the current momentum looks neutral, overall uptrend has held valid till the day. Immediate support of the market lies at 1,417 points where a rebound can present a buying opportunity. On the other hand, a drop can see the index test 1,350-point level whereas resistance of the market lies at 1,500’s level.

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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