Market caps week with modest gain

Published On: December 21, 2018 04:30 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU: Stocks shot up in the beginning of Thursday's session as the Nepal Stock Exchange (Nepse) index rallied more than 10 points in the morning session to cross 1,173 points. Nonetheless, the index failed to hold on to its earlier gains as the market witnessed steady decline throughout the remaining session. At the close, Nepse settled at 1,165.97 points – up 3.28 points compared to Wednesday.

After correcting for two straight days, the index ended its losing run with a marginal gain. However, overall sentiment seemed mixed as sellers also remained active in the day's session, mitigating the morning rally. On Thursday, the bourse posted a total turnover of Rs 401 million.

Traded sectors turned in mixed performance. Maximum gains came from Hydropower and Development Bank stocks. The groups' sub-indices climbed up by 0.97 percent and 0.89 percent, respectively. Moderate strength was also visible among insurance scrips reflected by 0.58 percent and 0.36 percent advances in sub-indices of Non-life Insurance and Life Insurance groups, respectively. Sub-index of market heavyweight Banking group also ended in green. Meanwhile, Hotels and Finance scrips came under pressure, dragging the respective sub-indices down by 1.67 percent and 1.1 percent. 'Others' and Trading sub-indices edged mildly lower.

In terms of market activity, NMB Bank Ltd posted highest turnover of over Rs 56 million. Next on the list was Nepal Bank Ltd with total transaction of over Rs 25 million. Stocks of other commercial banks were also traded actively. Nepal Investment Bank Ltd and Prime Commercial Bank Ltd registered turnover of Rs 18 million each, while Global IME Bank Ltd logged in total transaction of Rs 15 million.

Among gainers, the biggest gain came from Shangrila Development Bank Ltd which saw its share price rally 7.75 percent. Unit price of NIBL Samriddhi Fund 1 Mutual Fund appreciated by 6.09 percent. Kabeli Bikas Bank extended its gaining streak to the second day posting gains of over 5 percent. Besides, Ngadi Group Power Ltd, Kisan Microfinance Bittiya Sanstha Ltd and NMB Microfinance Bittiya Sanstha Ltd added 4.39 percent, 3.94 percent and 3.78 percent, respectively, on their share prices.

Conversely, finance companies led the list of decliners with share prices of Lalitpur Finance Company Ltd and ICFC Finance Ltd shedding 6.67 percent and 5.62 percent, respectively. Stocks of Taragaon Regency Hotels Ltd and Mahila Sahayatra Microfinance Bittiya Sanstha Ltd also struggled and tanked 4 percent each. Similarly, RMDC Laghubitta Bittiya Sanstha Ltd, Central Finance Co Ltd and Sindhu Bikash Bank Ltd were among other top losers of the day.

On corporate front, Taragaon Regency Hotels Ltd published its earnings report for the first quarter of Fiscal Year 2018/19, reporting a 289 percent growth in its profit. As per the report, its profit stands at over Rs 39 million.

As per the ARKS technical analysis, the market formed a small bullish candlestick on Thursday while maintaining its ground above 1,160-point support zone. Relative Strength Index (RSI), which indicates market momentum, suggests neutral sentiment prevailing in the bourse. Nonetheless, if the current support zone upholds the index, a rise to Rs 1,180 points is likely.

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