daily market commentary

Market activity drops as Nepse fails to extend gains

Published On: October 10, 2018 09:34 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Oct 10: Market activity remained tepid on Tuesday as the Nepal Stock Exchange (Nepse) failed to extend gains. Though the benchmark index traded slightly higher in the initial trading session, gaining 7 points, it pared all its early gains to close 2.59 points down at 1,217.93 points. 

The market witnessed a slight downfall on the day after ending the previous session in green. Consequently, turnover remained below par only as Rs 343 million worth of shares changed hands on the day. This suggests continuation of sell-off in the market ahead of the festive holidays.

Most of the major sectoral indices reflected the broader market and ended in red. Only 'Others' sub-index closed higher with a gain of 1.6 percent. Hotels sector was the major contributor to Nepse's downturn with its sub-index tumbling by 1.15 percent. Next, shares of Hydropower stocks also plunged 0.93 percent. Non-life Insurance and Microfinance stocks logged loss of 0.66 percent and 0.52 percent, respectively. Similarly, sub-indices of Manufacturing & Processing, Banking, Life Insurance and Finance edged lower. 

In terms of stock-wise turnovers, NADEP Laghubitta Bittiya Sanstha Ltd was most actively traded with total transaction of over Rs 38 million. Next on the list was Chilime Hydropower Company Ltd which registered turnover of over Rs 17 million. Further, NIC Asia Bank Ltd and Sanima Mai Hydropower Ltd recorded a total transaction of Rs 16 million and 14 million, respectively. Machhapuchhre Bank Ltd, NMB Bank Ltd, Kumari Bank Ltd and Prabhu Bank Ltd were the other active stocks on the day.

Nepal Seva Laghubitta Bittiya Sanstha Ltd led the list of advances for the day as its share price rallied by almost 7 percent. Similarly, share price of Global IME Laghubitta Bittiya Sanstha Ltd appreciated by 6 percent. Likewise, share prices of Pokhara Finance Ltd and NIBL Pragati Ltd surged by over 4 percent each. Among others, shares of NADEP Laghubitta Bittiya Sanstha Ltd, Civil Laghubitta Bittiya Sanstha Ltd also saw their share prices rise by over 3 percent each.

Conversely, Nepal Insurance Company Ltd and Mahila Sahayatra Microfinance Bittiya Sanstha Ltd were the worst performers of the day as their share prices plunged by 4.18 percent and 4.16 percent, respectively. Share price of Progressive Finance Ltd also fell by over 3percent on the day. Besides, share prices of Ridi Hydropower Development Company Ltd, Support Microfinance Bittiya Sanstha Ltd, Api Power Company Ltd and NIBL Samriddhi Fund fell by over 2 percent each.

On corporate front, Aankhu Khola Hydropower Company Ltd has launched its Initial Public Offering (IPO) of 1.376 million units of shares from Tuesday. Investors can apply for shares till October 12.

As per the ARKS technical analysis, the market failed to add to the previous day's gains as the index fell marginally. With the recent downfall, the index is now trending below the 20-day and 50-day Exponential Moving Averages (EMAs). Further, the drop accompanied by low market participation indicates the market lacking significant momentum at present. Hence, investors are advised to maintain a cautious stance.


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