KATHMANDU, July 25: The equity market opened higher in the first hour of trading and remained mostly in the upside as investors reacted positively to the series of fourth quarterly reports. Despite a pullback at the end, market still managed to close 4.77 points higher. As a result, the benchmark Nepal Stock Exchange (Nepse) index closed at 1,199.27 points.
With the Index extending gains, the total turnover also showed an increment by over 57 percent as compared to the previous session. Over Rs 294 million worth of shares were exchanged in the stock on Tuesday's trading. Improvement in turnover shows that the liquidity crisis is easing off in the current market.
All major sub-indices ended in the positive territory except sub-indices of manufacturing and microfinance which declined 0.88 percent and 0.04 percent, respectively. Hotels sub-indices witnessed substantial strength as reflected by a 2.79 percent rise in its sub-index. It was followed by sub-indices of Banking, Finance, Life Insurance and Non-Life Insurance posting gains of 0.52 percent, 0.42 percent, 0.34 percent and 0.33 percent, respectively.
Shares of Nabil Bank Ltd was the forerunner in terms of turnover as over Rs 18 million worth of its shares were exchanged in the bourse. It was followed by Nepal Telecom Ltd, Nepal Bank Ltd and Nepal Investment Bank Ltd with turnovers of Rs 17 million, Rs 12 million and Rs 11 million, respectively. Likewise, Sanima Bank Ltd, Mega Bank Nepal Ltd and Nepal Insurance Company Ltd were other active stocks for the day.
In terms of advances, Naya Nepal Laghubitta Bikas Bank Ltd continued to lead the list of top gainers for the second straight day as its share price surged by 10 percent. Next on the list, shares of Bhargav Bikas Bank Ltd rose by 9.6 percent. Similarly, Gurkhas Finance Ltd, Summit Microfinance Development Bank Ltd, Shrijana Microfinance Bittiya Sanstha Ltd and Siddhartha Equity Fund gained over 5 percent each.
Conversely, Best Finance Company Ltd was the worst performer for the day as its share price plunged into the negative circuit of 10 percent. Stock of Progressive Finance Ltd also drop over 9 percent. Furthermore, National Hydropower Company Ltd, Himalayan Distillery Ltd and Nagbeli Laghubitta Bikas Bank Ltd also closed lower on Tuesday.
Among the companies which published fourth quarterly reports on Tuesday, City Express Finance Ltd reported a decline of 32 percent in net profit whereas Best Finance Company Ltd shows an improvement in their profit as compared to the last year. In other news, Bhargav Bikas Bank Ltd has announced 5.56 percent bonus shares to its shareholders. After the issue, the paid up capital will reach Rs 501 million.
As per the ARKS technical analysis, the Nepse index formed a bullish candlestick on a daily time frame. However, for a sustainable upward movement to be observed in the market, Nepse needs to cross and hold above its resistance of the 1,200-point mark along with noteworthy turnover.
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)