Daily Market Commentary

Nepse at 52-week low of 1,149 points

Published On: November 30, 2018 01:05 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Nov 30: Stocks witnessed continuous decline throughout Thursday's trading session. Despite making marginal gains initially, the benchmark Nepal Stock Exchange (Nepse) index traded on a weaker note, losing 10.37 points to end the last trading day of the week at 1,148.70 points.

The index, which traded range bothe preceding sessions, stretched its recent downfall to hit a 52-week low below 1,150 points. Skepticism regarding the overall financial outlook persisted among investors. More than Rs 322 million worth of shares were traded in the market on the day.

Most of the sectoral indices ended the day in red. Only Manufacturing & Processing and Finance sub-indices eked out marginal gains. Microfinance stocks continued to post losses as the segment's sub-index slumped 1.82 percent. Trading sub-group followed suit with its sub-index going down by 1.44 percent. Similarly, sub-indices of Banking and Life Insurance scrips fell by 0.92 percent each. All other sub-indices ended the day lower.

In terms of stocks wise turnover, Nepal Bank Ltd's shares posted the highest turnover of Rs 52 million. NMB Bank Ltd also continued to trade actively as more than Rs 26 million worth of its shares changed hands on the day. Sanima Bank Ltd also witnessed substantial share transaction ahead of book closure for its Annual General Meeting (AGM). The meeting is due to approve 14 percent cash dividend to the bank's shareholders. Shares worth Rs 96 million of the Class 'A' banks were exchanged on the day. Nepal Life Insurance Company Ltd also registered total transaction of Rs 19 million. Prabhu Bank Ltd, Janata Bank Nepal Ltd and Life Insurance Co Ltd were the other companies witnessing top turnovers.

Chhyangdi Hydropower Ltd led the list of advances on the day with its scrip, adding almost 4 percent. Next, Nabil Equity Fund saw its unit price climb 3.10 percent. Nepal Hydro Developers Ltd, Nagbeli Laghubitta Bikas Bank Ltd and ICFC Finance Ltd also posted moves to the upper side, gaining around 2 percent each.

IME General Insurance Ltd, on the other hand, was the biggest loser of the day. The insurer's share price tanked 5.85 percent. Similarly, share price of Mirmire Laghubitta Bittiya Sanstha Ltd and Neco Insurance Company went down by over 5 percent each. Deprosc Laghubitta Bittiya Sanstha Ltd also posted a loss of 5 percent after the micro sector lender announced 10 percent stock dividend and 10 percent cash payout to its shareholders. Besides, Grameen Bikas Laghubitta Bittiya Sanstha Ltd, Womi Microfinance Bittiya Sanstha Ltd and RSDC Laghubitta Bittiya Sanstha Ltd saw their share price go down by over 4 percent each.

Securities Board of Nepal (Sebon) has approved 70 percent rights issue of Surya Life Insurance Company Ltd. After the issue, the life insurer's capital will reach Rs 1.92 billion.

As per the ARKS technical analysis, the index formed a bearish candlestick on the daily timeframe stretching its losses further. With Moving Average Convergence Divergence (MACD) trending in the negative territory and Relative Strength Index (RSI) sloping downward in the oversold zone, the market remains fairly dominated by bears in the present context.

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