KATHMANDU: Stocks lacked direction for the first half of Thursday’s session as the Nepal Stock Exchange (Nepse) Index fluctuated between 1,170 and 1,175 points. Nonetheless, the market witnessed a broad rally in the latter trading hours as the index closed firmly higher in the last trading day of the week. At the close, the index stood at 1,181.69, up 9.39 points or 0.80 percent from the previous close.
With the increase in the index, market participation also showed slight improvement. However, turnover still remained well below par as Rs 211 million worth of shares changed hands on the day. This suggests lack of significant conviction among investors.
All major sub-indices, barring the Hotels sub-index, closed higher on the day. Hotels sub-index shed 0.13 percent. On the gaining side, Non-Life Insurance stocks turned in some of the best performances of the day as its sub-index rose 1.1 percent. Microfinance sub-index also added 0.96 percent. Meanwhile, banking sub-index rose 0.9 percent. Further, sub-indices of ‘Others’, Development Bank and Life Insurance sub-groups climbed 0.88 percent, 0.56 percent and 0.48 percent, respectively.
Among the actives, shares of NIC Asia Bank Ltd posted the highest turnover of Rs 21 million on the day. It was followed by shares of Nepal Life Insurance Company Ltd and Nepal Investment Bank Ltd Promoter Share with turnovers of Rs 16 million and Rs 14 million, respectively. Other top turnover stocks include NMB Bank Ltd and NLG Insurance Company Ltd with total transactions of over Rs 9 million each.
In terms of advances, Nadep Laghubitta Bittiya Sanstha Ltd posted the highest gain of 8.88 percent on the day. Swadeshi Laghubitta Bittiya Sanstha Ltd also surged 5.77 percent. On Thursday, the company announced its book closure date as September 10 for the issue of 100 percent right shares to its shareholders. Similarly, shares of Purnima Bikas Bank Ltd and Arambha Microfinance Bittiya Sanstha Ltd rose over 5 percent each. Nepal Seva Laghubitta Bikas Bank Ltd, NIC Asia Bank Ltd and Naya Nepal Laghubitta Bikas Bank Ltd were the other top gainers.
Conversely, shares of Saptakoshi Development Bank Ltd lost the most on the day as its price slumped 3.42 percent. Further, Chhyangdi Hydropower Ltd, Bhargav Bikas Bank Ltd and Best Finance Company Ltd skidded over 2 percent each. Other losing stocks include Global IME Laghubitta Bittiya Sanstha Ltd, Century Commercial Bank Ltd Promoter Share and Kankai Bikas Bank Ltd.
In the corporate space, Nepal Insurance Company Ltd published its fourth quarterly financials of the fiscal year 2017/18 reporting 8.56 percent growth in its net profit. Its net profit, as per the report, stands at Rs 125 million. Meanwhile, Shine Resunga Development Bank Ltd announced 18 percent bonus shares to its shareholders on Thursday. The decision is due for approval from the bank’s Annual General Meeting (AGM).
ARKS technical analysis model indicates the formation of a bullish candlestick on a daily time frame. As a result, the index recouped all of its losses from the previous session. However, the upward movement of the index is not backed by significant volume. Besides, technical indicators also suggest a feeble momentum in the market. Hence, the market is likely to continue in its bland pace in the coming sessions.
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)