Daily Market Commentary

Nepse closes fairly higher as stocks stretch gains

Published On: March 8, 2019 03:30 AM NPT By: Republica


KATHMANDU, Mar 8: Stocks opened Thursday's trading on an optimistic note as the benchmark Nepal Stock Exchange (Nepse) index gained almost 10 points in early trading. Though the index pared most of its early gains by midday, the bourse saw another rally in the closing session which pushed the benchmark index 16.01 points higher compared to Wednesday. Ultimately, the index closed the week at 1,127.77 points.

Investors seemed fairly upbeat toward the end of the week as the bourse extended its winning run for the third consecutive day. The index has found some ground after its rebound from 1,100 points in the mid-week. The exchange also saw improvement in terms of market activity as almost Rs 30 million worth of shares were exchanged in the day.

Except Manufacturing & Processing sub-index which shed 1 percent, all the sub-indices ended the day in green. Biggest gains came from insurance stocks. The Life Insurance sub-index was up by 2.77 percent, while Non-Life Insurance sub-index also appreciated by 1.96 percent. Microfinance, Hydropower, Banking and Development Bank sectors also witnessed significant strength as their respective sub-indices climbed up by over 1 percent.

Nepal Life Insurance Company Ltd led the list of active stocks with total share transactions of over Rs 19 million. Next, Nepal Credit and Commercial bank Ltd was Rs 12 million worth of shares traded. Shares of Upper Tamakoshi Hydropower Ltd, Prabhu Bank Ltd and NIC Asia Bank Ltd were also traded actively traded with turnovers of Rs 10 million apiece.

Among gaining sides, share price of Purnima Bikas Bank Ltd rallied to hit the upper circuit of 10 percent. Correspondingly, Radhi Bidyut Company Ltd, Mahuli Samudayik Laghubitta Bittiya Sanstha Ltd and National Hydropower Company Ltd also saw significant strength as their share prices shot up by over 8 percent on the day. Jebils Finance Ltd, Ridi Hydropower Development Company Ltd and Arun Kabeli Power Ltd were among other advances of the day.

On the other hand, Ghalemdi Hydro Ltd continued to suffer as its share price fell by 4.67 percent. Central Finance Co Ltd also saw its share price tumble by 4.46 percent. Meanwhile, share price of Kanchan Development Bank Ltd closed 3.82 percent lower. Other losing securities of the day include Sanima Equity Fund, Unilever Nepal Ltd and Civil Laghubitta Bittiya Sanstha Ltd, among others.

On the corporate front, National Life Insurance Company is holding its Annual General Meeting (AGM) on March 29. Distribution of 13.5 percent bonus shares for Fiscal Year 17/18 is one of the agendas of the meeting.

ARKS technical analysis indicates the market forming a bullish candlestick, indicating marked buying pressure in the day's session. Technical indicators also suggest momentum shifting in the positive direction following three straight days of gains. In the meantime, the benchmark index has breached immediate resistance at around 1,125 points. Given the index holds ground above this level, a further upward movement is possible in the short term.


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