Daily Market Commentary

Nepse closes lower for second straight day

Published On: September 11, 2018 03:45 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Sept 11: The stock market got off to a weak start on Monday, and couldn't reverse direction as the day progressed. As investors were on profit-booking mood on the day, the pullback continued on second consecutive day of the week. At the close, Nepal Stock Exchange (Nepse) index was down by 8.10 points at 1,210.88 points.

In terms of overall market activity, the bourse saw 15.17 percent less transactions compared to the preceding day. Over Rs 277 million worth of shares were traded on the day.

In terms of sectoral performance, Manufacturing & Processing and Microfinance sub-indices managed to hold on to gains of 1.11 percent and 0.89 percent, respectively. Besides, all other sub-indices closed the day in red. Major weakness was visible among Hotels stocks the group's sub-index declined by 2.45 percent. Sub-indices of Non-life Insurance and Banking sectors also shed 1 percent and 0.9 percent, respectively. Hydropower, Development Bank, Finance, Others and Life Insurance sub-indices also ended the day lower.

Hathway Microfinance Company Ltd Promoter Share topped the list of active stocks on the day as more than Rs 29 million worth of its shares were traded. Next on the list was Global IME Bank with turnover of Rs 20 million. Other commercial bank scrips including NICA Asia Bank Ltd, Kumari Bank Ltd, NMB Bank Ltd, Prime Commercial Bank Ltd, Prabhu Bank Ltd and Nabil Bank Ltd followed suit.

Microfinance stocks led the list of top gainers' on Monday. Support Microfinance Bittiya Sanstha Ltd logged the best performance of the day as its share price surged by almost 10 percent. Further, Arambha Microfinance Bittiya Sanstha Ltd stocks climbed over 8 percent. Share price of Mero Microfinance Bittiya Sanstha Ltd and Forward Community Microfinance Bittiya Sanstha Ltd also gained over 5 percent each. Likewise, Swadesi Laghubitta Bittiya Sanstha Ltd and Nerude Laghubitta Bikas Bank Ltd saw their share prices rise by over 3 percent each.

Conversely, Green Development Bank Ltd was the worst performer for the second consecutive day as its share price plunged into the negative circuit of almost 10 percent. Likewise, stocks of Shrijana Finance Bittiya Sanstha Ltd and Siddhartha Insurance Ltd also tumbled 6.14 percent and 5.02 percent, respectively. Among others, shares of Saptakoshi Development Bank Ltd, Sahayogi Bikas Bank Ltd and Jyoti Bikas Bank Ltd dropped over 4 percent each.

On corporate space, Samata Microfinance Bittiya Sanstha Ltd has proposed 10 percent bonus shares and 11.05 percent cash dividend to its shareholders from the net profit it earned in Fiscal Year 2017/18.

ARKS technical analysis indicates a bearish candlestick formation on Monday's session. With the day's decline, the index has reached to the psychological support of 1,210 points. If the market fails to maintain above this level, the index is likely to continue trending downward toward its next support at 1,170 points.

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