Daily Commentary: Stocks ends in green for second straight day

Published On: August 19, 2020 07:35 AM NPT By: Republica  | @RepublicaNepal

Nepse benchmark index up 6 points

KATHMANDU, Aug 18: The stock market moved to the upper side within the first few minutes of trading on Tuesday and shot 12 points. However, the wave of selling pressure dragged the index back to red by the end of the first trading hour. But a steady advance followed suit at mid-day and continued its positive bias throughout the session.  At the end, the benchmark Nepal stock exchange (Nepse) index closed with a gain of 5.68 points to close the session at 1407.89 points.

Following the index, the market participation remained upbeat as over Rs 1.23 billion worth of shares changed hands in the session.

On the sectoral front, Trading, Manufacturing & Processing and Others sub-indices saw strength and closed above 1 percent each, Similarly, Non-Life Insurance, Life Insurance, Microfinance and Hydropower sub-index ended the day on a meager increment. On the other hand, sub-indices of Banking, Hotels, Developments Bank, Finance and Mutual Funds saw slight declines.

Shares of Citizen Investment Trust were traded the most as the scrip witnessed a total turnover of Rs 166 million. Nepal Life Insurance Co. Ltd, Neco Insurance Co. Ltd and Nepal Reinsurance Company Ltd saw transactions worth over Rs 84 million, Rs 72 million and Rs 63 million respectively. Likewise, Global IME Bank Ltd, Prabhu Bank Ltd Promoter Share, Century Commercial bank Ltd Promoter Share and Nepal Bank Ltd registered turnovers of over Rs 47 million, Rs 44 million, Rs 30 million and Rs 27 million correspondingly.

Among gainers, shares of Citizen Investment Trust, Sadhana Laghubitta Bittiya Sanstha Ltd, Panchakanya Mai Hydropower Ltd and Union Hydropower Ltd end the day on the upper circuit limit. Their share prices add the gains of 9.98 percent, 9.91 percent, 9.86 percent and 9.43 percent respectively. Likewise, NLG Insurance Company Ltd, Barun Hydropower Company Ltd, Laxmi Laghubitta Bittiya Sanstha ltd and Shivam Cements ltd posted advances of 4.94 percent, 4.76 percent, 4.28 percent and 4.17 percent correspondingly.

On the other hand, shares of Ghalemdi Hydro Ltd suffered losses of 6.67 percent on the day. Next, Dibyashwori Hydropower Ltd, Laxmi Bank Ltd and Shree Investment Finance Co. Ltd struggled and fell by 3.77 percent, 3.42 percent and 3.18 percent respectively. Similarly, shares of Best Finance Company Ltd, Kamana Sewa Bikas Bank Ltd, Arun Kabeli Power Ltd, Nepal Seva Laghubitta Bittiya Sanstha Ltd, Himal Dolakha Hydropower Company Ltd, Civil Bank Ltd and Global IME Samunnat Scheme-1 lost over 2 percent each on Tuesday’s trading session.

As per the ARKS technical analysis, the index formed a small bullish candlestick on the daily timeframe. However, the technical indicators still reflect the neutral sentiment in the current context. Nonetheless, the market is trading above the strong psychological support level of 1400 points. A rebound from this level with significant volumes will validate the uptrend, while a dip toward the negative zone can trigger more selling in the share market.

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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