Daily market commentary

Nepse crosses 1,300 points

Published On: January 17, 2020 08:38 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Jan 17: Trading began on a positive note on Thursday as the benchmark Nepal Stock Exchange (Nepse) index shot up by more than 18 points. However, the market pulled back marginally within the first trading hour but still managed to stay in the green territory. After trading at around 1,300-point level for more than an hour, a final surge witnessed in the secondary market pushed the Nepse index 26 points higher at 1,310.23 points.

The index closed firmly above the crucial 1,300-point mark to climb to a seven-month high. The bourse continued to see significant strength on the back of heavy traded volumes in the recent sessions. Market activity also increased as reflected by turnover of Rs. 1.69 billion.

Majority of the sectors closed in the upper side of the spectrum except ‘Others’ sub-index which was down by 0.25%.Finance and Manufacturing & Processing sub-indices logged the gains of 4.16% and 4.03%, respectively. Similarly, Trading, Hotels, Microfinance, Life Insurance and Mutual Fund sectors followed the broader market with their sub-indices closing above 3% each. Likewise, Non-life Insurance, Development Bank, Banking and Hydropower sub-indices rallied by 2.46%, 2.41%, 1.69% and 0.78%, respectively.

Himalayan Distillery Ltd and Shivam Cements Ltd were the most active stocks as Rs 144 million and Rs 136 million worth of their shares changed hands. Banking stocks were traded heavily on the last trading day of the week. NIC Asia Bank Ltd and Prabhu Bank Ltd recorded turnovers of Rs 68 million and Rs 51 million, respectively. Similarly, Nepal life Insurance Company Ltd, Nepal Bank Ltd and Kumari Bank Ltd posted the transactions of over Rs 40 million each. Prime Commercial Bank Ltd, Nepal Credit and Commerce Bank Ltd and NMB Bank Ltd were other active stocks of the day.

Among advances, shares of NIBL Pragati Fund, ICFC Finance Ltd, Global IME Laghubitta Bittiya Sanstha Ltd and Multi-Purpose Finance Company Ltd hit the upper circuit of 10%. Furthermore, share prices of nine companies surged by above 9% each. These include National Microfinance Bittiya Sanstha Ltd, Asha Laghubitta Bittiya Sanstha Ltd, Infinity Laghubitta Bittiya Sanstha Ltd, Shivam Cements Ltd, Dibyashwori Hydropower Ltd, Pokhara Finance Ltd, Tinau Mission Development Bank Limited, Saptakoshi Development Bank Ltd and Naya Nepal Laghubitta Bikas Bank Ltd.

On the contrary, shares of Mahila Sahayatra Microfinance Bittiya Sanstha Ltd and Arun Kabeli Power Ltd suffered and fell over 2% each. Likewise, seven companies, which include the scrips of National Hydropower Company Ltd, Sanima Bank Ltd Debenture, Laxmi Equity Fund, Gurans Finance Ltd, Reliance Finance Ltd, Chhyangdi Hydropower Ltd, and Best Finance Company Ltd, ended the day on the lower side by losing above 1% each.

As per the ARKS technical analysis, the index formed the large bullish candlestick on the daily timeframe. On the day, the stock market breached the psychological resistance of 1,300 points with notable turnover. However, a breach of another immediate resistance at around 1,320 points might see a further possible move to the upside in the coming sessions.

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)

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