Daily Market Commentary

Nepse closes higher for second straight day

Published On: January 24, 2019 11:24 AM NPT

KATHMANDU, Jan 24: The benchmark Nepal Stock Exchange (Nepse) index moved slightly to the upside on midday and continued to maintain positive bias throughout the session. At the end, the index posted a modest gain of 4.15 points to close the day at 1,172.98 points.

Following the day's progress, Nepse closed in the green for two consecutive sessions. The stock market recorded a total turnover of Rs 247 million. Majority of sub-indices ended the day in green following the broader market. Hydropower sector was the major contributor to Nepse's gain with its sub-index rising by 2.55 percent. 

Trading and Non-Life Insurance sectors also logged gains of 1.15 percent and 1.05 percent, respectively. Microfinance, Development Banks, 'Other' and Banking stocks followed suit with their sub-indices closing slightly higher. 

In contrast, Manufacturing & Processing and Life Insurance sub-indices ended the day lower.

In terms of turnover, Upper Tamakoshi Hydropower Ltd posted the highest turnover for Wednesday. More than Rs 37 million worth of the bank's shares changed hands on the day. Machhapuchhre Bank Ltd and Citizens Investment Trust followed suit for second consecutive day with total transactions of Rs 15 million and 9 million, respectively. Additionally, Everest Bank Ltd, Civil Bank Ltd, Lumbini Bikas Bank Ltd and Standard Chartered Bank Ltd registered turnovers of over Rs 6 million apiece.

Shares of Sanima Equity Fund led the list of gaining stocks and surged by almost 10 percent. Ankhu Khola Jalvidhyut Company Ltd also posted a substantial move to the upside with its share price going up by 7.5 percent. 

Similarly, Shares of Upper Tamakoshi Hydropower Ltd also advanced by 6.92 percent on the day. Mirmire Laghubitta Bittiya Sanstha Ltd, Nepal Community Development Bank Ltd, Nirdhan Utthan Laghubitta Bittiya Sanstha Ltd were among other gaining stocks for Wednesday's Trading.

On the other hand, Joshi Hydropower Development Company Ltd posted a loss of 4.93 percent on the day. Gurkhas Finance Ltd and Panchakanya Mai Hydropower Ltd also suffered and dropped almost 4 percent each. Tinau Development Bank Ltd, Unilever Nepal Ltd and BARUN Hydropower Co Ltd also registered losses of over 2 percent each. On the announcement front, Mithila Laghubitta Bittiya Sanstha Ltd will be issuing 50 percent right shares for its shareholders from December 31. After the adjustment of previously declared bonus shares and right shares, the paid up capital of the microfinance will reach Rs 105 million.

Among companies publishing second quarter earnings report of fiscal year 18/19, Jyoti Bikas Bank Ltd reported a year-on-year net profit growth of almost 19 percent. Its net profit stands at Rs 170 million. Similarly, Lumbini Bikas Bank Ltd's net profit grew by more than 63 percent year-on-year to Rs 234 million. As per the ARKS technical analysis, the index formed a small bullish candlestick on the daily timeframe. However, the technical indicators suggest that the sentiment remains bearish in the current moment. Hence, a strong decisive direction in the equity market is yet to be observed. 

This column is produced by ARKS Capital Advisors Ltd
(Views expressed are those of the producer and do not necessarily reflect those of this publication)

Leave A Comment