Daily market commentary

Nepse begins week with 4-point decline

Published On: July 8, 2019 02:30 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, July 8: Stocks traded briefly in green on Sunday morning but came under pressure throughout the remaining trading session. The benchmark Nepal Stock Exchange (Nepse) index fell to as low as 1,255 points in the afternoon. Thereafter, the index was essentially flat. At the close, Nepse was down by 4.45 points at 1,256.04 points.The index extended Thursday's losses further tumbling toward the 1,250-point mark. Though some sectors added values on the day, heavyweight banks failed to hold ground resulting in the day's decline. Nonetheless, buying pressure was seen in some mid-level banks amidst rumors of mergers and acquisitions. The bourse, meanwhile, witnessed moderate market activity with a total turnover of Rs 540 million.

Traded sectors ended had a mixed performance. On the gaining side, Non-Life Insurance scrips witnessed some strength as the group's sub-index went up by 0.75%. Finance and Manufacturing & Processing sub-indices followed with gains of 0.44% and 0.41%, respectively. Hotels, Development Bank and Mutual Fund sectors also eked out marginal gains. Conversely, Life Insurance and Microfinance sub-indices were down by 0.83 % and 0.63%, respectively. Banking sub-index was also down by 0.59%. Trading, Hydropower and 'Others' sub-indices posted meager losses.

Among actives stocks, Civil Bank Ltd registered the highest turnover of the day with Rs 58 million worth of shares traded. Similarly, Mega Bank Ltd and Nepal Bank Ltd recorded turnovers of Rs 47 million and Rs 41 million, respectively. Century Commercial Bank Ltd, Kamari Bank Ltd and Prabhu Bank Ltd were among other active stocks of the day. Share price of Swabhimaan Laghubitta Bittiya Sanstha Ltd extended its rally further and hit the upper circuit of 10%. Similarly, Dibyashwori Hydropower Ltd also saw its share price appreciated by more than 9%.

Further, Rairang Hydropower Development Company saw a 4.63% growth in its share price. Similarly, share prices of Best Finance Company Ltd, Shangrila Development Bank Ltd and Civil Bank Ltd were also up by 4% eachJanautthan Samudayic Laghubitta Bikas Bank Ltd witnessed significant selling pressure on the day as its share price tanked to lower circuit of 10%. Swarojgar Laghu Bitta Bikas Bank Ltd, Mithila Laghubitta Bittiya Sanstha Ltd and Khanikhola Hydropower Co Ltd also struggled with their respective prices falling by over 4% each. Other losing scrips for the day were Nepal Agro Laghubitta Bittiya Sanstha Ltd, Ridi Hydropower Development Company Ltd and Prime Commercial Bank Ltd.

On corporate front, Nepal Credit and Commerce Bank Ltd has declared 15.89% bonus shares to its shareholders from the profit it earned in Fiscal Year 2017/18. Its share price fell by 1.61% on Sunday. Meanwhile, Adhikhola Laghubitta Bittiya Sanstha Ltd launched its public issue from Sunday. After the issue, which is worth Rs 40 million, the microfinance's paid up capital will reach Rs 100 million.ARKS technical analysis indicates the index reverting toward the psychological 1,250-point mark with two bearish candlesticks formation. In the meantime, technical indicators suggest slightly bearish to neutral sentiment in the secondary market of late. A breach of 1,250 points to the downside might indicate further bearish movement, while a notable bounce will indicate a momentum shift to bulls.

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