KATHMANDU, July 30: Stocks remained mostly positive during Sunday's trading. Nonetheless, the Nepal Stock Exchange (Nepse) index couldn't maintain its highest intraday level at the close. Despite a slight pullback, Nepse managed to end the first trading day of the week 3.62 points higher to close at 1,194.82 points.

Even though the index showed a slight improvement on Sunday, total turnover failed to move above the Rs 200-million mark. Total turnover stood at Rs 184 million, indicating that investors still lack the confidence to enter the secondary market with conviction.

Weakness was visible among Hotel stocks as its sub-index declined over 1 percent. The sub-indices of the Manufacturing & Processing, Trading, Hydropower, Finance and Microfinance also closed the day in red. On the other hand, sub-indices of Others and Life Insurance groups rose 0.89 percent. Similarly, sub-indices of Development Bank, Banking and Non-life Insurance also ended in positive territory.

In terms of turnover, Jalabidhyut Lagani Tatha Bikas Co Ltd led the list of companies in terms of turnover. Over Rs 12 million worth of its shares changed hands on the day. Stocks of Nepal Credit and Commerce Bank Ltd, Nepal Bank Ltd and NMB Bank Ltd followed suit, logging turnovers of more than Rs 8 million each. Nepal Life Insurance Company Ltd, Nabil Bank Ltd and Sanima Mai Hydropower Company Ltd were the other active stocks of the day.

National Hydropower Company Ltd was the best performing stock of the day as its share price surged over 7 percent. Next on the list was Jalabidhyut Lagani Tatha Bikas Co Ltd which saw its share price go up by over 5 percent. Shrijana Finance Bittiya Sanstha Ltd, Manjushree Finance Ltd, Nabil Equity Fund and Nerude Laghubitta Bikas Bank Ltd were the other top gaining stocks of the day.

Conversely, City Express Finance Company Ltd was the biggest drag of the day as its share price fell by almost 10 percent. Likewise, Nepal Hydro Developers Ltd, Progressive Finance Ltd and Gurkhas Finance Ltd also closed lower.

On news front, Kisan Microfinance Bittiya Sanstha Ltd has published its financial report for the fourth quarter of Fiscal Year 2017/18, reporting a 13.14 percent drop on its net profit. Further, Progressive Finance Ltd has reported a massive decline in its net profit. As per its financial report for the fourth quarter, its earnings dropped over 74 percent year-on-year. Meanwhile, City Finance Ltd has called its Annual General Meeting (AGM) on August 6. Issuing 167 percent rights shares to its shareholders are one of the agendas of the meeting.

ARKS technical analysis model indicates that the market has continued to trend within a limited range for more than two weeks. Despite the index closing higher on Sunday, its inability to breach the 1,200-point mark suggests that the market still lacks significant thrust. Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) also indicate a feeble momentum. A breakout of 1,200 points and 1,220 points with noteworthy volume can present buying opportunities for short-term investors.

 
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