Daily Market Commentary

Market closes firmly lower

Published On: January 28, 2019 05:30 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Jan 28: The Nepal Stock Exchange (Nepse) index opened Sunday's trading on a weaker note. The trend continued till midday and the benchmark index was flat thereafter. Eventually, the index closed the day 10.9 points lower at 1,162.09 points.

The local bourse has seen a significant drop in market participation in recent sessions amid lack of conviction among investors. Only Rs 340 million worth of shares were traded on Sunday.

All the sub-indices ended the day in negative territory. Non-life Insurance and Life Insurance sub-indices posted losses of 1.65 percent and 1.15 percent, respectively. Similarly, Hydropower scrips fell as reflected by a drop of 1.31 percent in the group's sub-index. Manufacturing & Processing, Microfinance, Banking and Hotels sub-indices also edged lower.

In terms of market participation, Upper Tamakoshi Hydropower Company Ltd posted the highest turnover of over Rs 32 million. Next on the list was Nepal Bank Ltd and Janata Bank Ltd Promoter Share with total transaction of over Rs 16 million and 14 million, respectively. Furthermore, shares worth Rs 10 million each of Citizen Investment Trust, NIC Asia Bank Ltd and NMB Bank Ltd were traded on Sunday.

Samata Microfinance Bittiya Sanstha Ltd and Kankai Bikas Bank Ltd led the list of advances, posting gains of over 3 percent each. Meanwhile, share prices of Green Development Bank Ltd, Samudayik Laghubitta Bittiya Sanstha Ltd and United Finance Ltd appreciated by over 1 percent each. RSDC Laghubitta Bittiya Sanstha Ltd, Prime Commercial Bank Ltd Promoter Share and Ridi Hydropower Development Company Ltd also ended the day in green.

On the other hand, Chhyangdi Hydropower Ltd and Janata Bank Nepal Ltd Promoter Share posted a decline of over 6 percent each on their share prices. Barun Hydropower Co Ltd, Laxmi Laghubitta Bittiya Sanstha Ltd and Reliance Finance Ltd also saw their share prices fall by over 3 percent each. Global IME Laghubitta Bittiya Sanstha Ltd, National Hydro Power Company Ltd and Shree Investment Finance Co Ltd were among other losing scrips of the day.

Among companies publishing earnings report for the second quarter of Fiscal Year 2018/19, SBI Bank Ltd reported a year-on-year net profit growth of almost 11 percent. The commercial bank's net profit stands at Rs 1.02 billion. Similarly, Shine Resunga Development Bank Ltd's net profit grew by more than 31 percent year-on-year to Rs 199 million.

ARKS technical analysis indicates the index forming a bearish candlestick on the daily timeframe following the broad selloff in the session. Similarly, the technical indicators suggest that the sentiment remains bearish in the current moment. Hence, the investors are suggested to take decisions cautiously.

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