KATHMANDU, June 25: The benchmark Nepal Stock Exchange (Nepse) index moved slightly lower in the opening hour of Sunday's trading session before reaching intra-day high of 1,227.74 points. However, the index pulled back sharply during the last trading hour to close with a meager gain of 1.35 points at 1,219.81 points.
The stock market continued its streak of lackluster trading sessions as only Rs 209 million worth of shares were traded on the first trading day of the week. This is primarily because investors and traders are maintaining a watchful stance ahead of the monetary policy for the new fiscal year.
Major sub-indices turned in mixed performance with marginal movements. Strength was visible among finance stocks as the Finance Sub-index rose by 0.56 percent. The sub-indices of Manufacturing/Processing, Insurance, Banking and Development Bank also ended the day in green. On the other hand, hydropower stocks were on pressure as its sub-index dropped 0.49 percent. Others, Microfinance and Hotels sub-indices also finished lower.
National Life Insurance Company Promoter Shares was the most active on the day, recording a total transaction of over Rs 20 million. Second on the list was Om Development Bank Ltd which logged a turnover of Rs 11 million. Kamana Sewa Bikas Bank Ltd Promoter Share, Neco Insurance Company Ltd and Everest Bank Ltd were the other companies who posted impressive turnover figures.
In terms of advances, Arambha Microfinance Bittiya Sanstha Ltd was the biggest gainer of the day as its share price rallied 6.83 percent. Further, Jebils Finance Ltd witnessed its share price surge by 5.88 percent. Shares of Surya Life Insurance Company Ltd followed suit, posting a gain of over 4 percent. The insurer has announced 70 percent rights shares to its shareholders. With the allotment of rights shares, the company's paid-up capital will reach the requirement level of Rs 2 billion. The decision, however, is yet to be approved by the company's annual general meeting (AGM).
Conversely, National Hydro Developers Ltd was the worst performer of the day as it shares underwent price correction for a third straight day. Its share price plummeted over 9.5 percent on Sunday. Significant weakness was also visible among stocks of Rairang Hydropower Development Company Ltd, Arun Kabeli Power Ltd and Kankai Bikas Bank Ltd as their prices slumped over 3 percent a piece.
In the corporate front, Nadep Laghubitta Bittiya Sanstha Ltd has launched its Initial Public Offering (IPO) worth Rs 48 million from Sunday. Furthermore, Samata Microfinance Bittiya Sanstha Ltd has announced book closure date for its issuance of 50 percent right shares on June 26. Likewise, Mirmire Microfinance Development Bank Ltd will be issuing 100 percent right shares to its shareholders. Both the issues will begin on July 11.
As per the ARKS technical analysis, the Nepse index has advanced slightly for a second straight day with a small bullish candlestick formation on a daily timeframe. However, the index is trading notably below the 20 and 50 day moving averages (MAs). Besides, technical indicators like Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) also suggests lack of substantial momentum in the market. Overall, the equity market is still in favor of bears in the present context.
This column is produced by ARKS Capital Advisors Ltd www.arkscapitaladvisors.com
(Views expressed are those of the producer and do not necessarily reflect those of this publication)