KATHMANDU, Dec 10: The Nepal Stock Exchange (Nepse) index started the session on a positive note on Sunday. The benchmark Nepse index recouped some of its preceding week losses by maintaining positive bias throughout the session. At the close, the index was up 10.85 points at 1,131.70 points.
The stock market recorded a total turnover of Rs 223 million on the day. Majority of traded sectors followed the broad index with maximum gains coming from banking stocks. The banking sub-index jumped by 1.37 percent. Hydropower and Trading stocks also logged gains of 0.97 and 0.92 percent, respectively. Development Bank, Non-Life Insurance, Hotels and 'Others' stocks followed suit, with their sub-indices closing slightly higher. In contrast, Finance and Manufacturing & Processing sub-indices ended the day in red.
In terms of stock-wise turnover, Nepal Bank Ltd remained active on the day with a total transaction of over Rs 27 million. Second on the list was Prabhu Bank Ltd with Rs 17 million worth of shares traded. NMB Bank Ltd and Nepal Life Insurance Company Ltd followed suit with turnovers of Rs 15 million and Rs 13 million, respectively. NIC Asia Bank Ltd, Chhimek Laghubitta Bittiya Sanstha Ltd, Chilime Hydropower Company Ltd and Nepal SBI Bank Ltd were the other active stocks of the day.
Mirmire Laghu Bittiya Sanstha Ltd was the biggest gainer of the day as its share price surged over 5.67 percent. Barun Hydropower Company Ltd and NIC Asia Bank Ltd also saw their share prices go up by over 5 percent each. Besides, Kabeli Bikas Bank Ltd, Ridi Hydropower Company Ltd, Support Microfinance Bittiya Sanstha Ltd and Kumari Bank Ltd were among other advances logging gains of over 3 percent each.
On the contrary, Laxmi Equity Fund Ltd posted the highest loss of 7.44 percent. It was followed by Laxmi Laghubitta Bittiya Sanstha Ltd, Mithila Laghubitta Bittiya Sanstha Ltd, Swadeshi Laghubitta Bittiya Sanstha Ltd and National Microfinance Bittiya Sanstha Ltd which saw their share price go down by over 3 percent each. Other major declines of the day include Kankai Bikas Bank Ltd, Civil Laghubitta Bittiya Sanstha Ltd and United Modi hydropower Company Ltd.
On announcements front, Butwal Power Company Ltd has set its book closure date on December 20 to organize its annual general meeting (AGM). The AGM is due to approve 10 percent bonus shares and 18 percent cash dividend to the hydropower company's shareholders. Standard Chartered Bank Ltd has declared January 21 as its book closure date to organize its AGM. Issuance of 17.5 percent cash dividend is one of its agendas. Further, Forward Community Microfinance Bittiya Sanstha Ltd has announced 25 percent bonus shares and 20 percent cash dividend to its shareholders from the profit it generated in FY2017/18. The decision, however, is subject to approval of the central bank and the micro finance institution's upcoming AGM.
ARKS technical analysis indicates the market forming a bullish marubozu candlestick on Sunday following the day's gains. Nonetheless, Moving Average Convergence Divergence (MACD) still trending in the negative territory suggests that the market is yet to see a significant shift in momentum. Hence, investors are suggested to be cautions before taking any decisions in the present context.
This column is produced by ARKS Capital Advisors Ltdwww.arkscapitaladvisors.com
(Views expressed are those of the producer and do not necessarily reflect those of this publication)