Daily market commentary

Nepse down 5 points

Published On: December 30, 2019 09:18 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU: Stocks traded flat for most of Sunday's trading session and wavered around 1,166 points till mid-session. 

However, the Nepal Stock Exchange (Nepse) index gave some ground in the latter trading hours before closing the day 4.99 points lower at 1,162.43 points.

After witnessing restrained trading in the previous sessions, the index posted a slightly volatile trading on Sunday. 

Mainly sellers prevailed in the session, albeit with a feeble momentum. In the session, market was somewhat pulled by selling seen on few major banking shares as investors resorted to selling such stocks after realizing respective dividends for the year. 

Despite the loss, the index is still considerably higher for the month of December. Meanwhile, daily turnover dropped to Rs 422 million compared to Rs 589 million recorded on the previous trading day.

Most of the sectors ended the day in negative territory. Mutual Fund sub-index was down by 1.92%. Hotels segment also suffered as the group's sub-index fell by 0.87%. Banking sub-index closely followed with a 0.83% dip. Hydropower, Microfinance, Manufacturing & Processing, Development Bank and Non-Life Insurance sub-indices also closed the day lower. On the other hand, Trading sub-index was up by 7.9% driven by further rally in share prices of adding Corporation. Life Insurance sub-index also added 1.43%, while Finance and 'Others' sub-indices eked out marginal gains.

Shares of Nepal Life Insurance Company Ltd was traded actively on the day. More than Rs 48 million worth of the life insurer's shares changed hands on the day. 

Nepal Investment Bank Ltd Promoter Share saw turnover of over Rs 36 million. Prime Commercial Bank Ltd, Nepal Bank Ltd and Shivam Cements Ltd were among other top turnover scrips of the day.

Salt Trading Corporation led the gaining sides as its share price clocked record high of Rs 1,929 per share. 

Share prices of Mountain Hydro Nepal Ltd and Nepal Finance Ltd were up by 7.14% and 6.06%, respectively. While share price of Kanchan Development Bank Ltd shot up by 4.82%, Shrijana Finance Ltd, Ankhu Khola Jalvidhyut Company Ltd and Sagarmatha Insurance Company Ltd saw their share prices rally over 3% apiece.

On the other hand, Progressive Finance Ltd turned in the worst performance of the day giving up almost 7 points. Share price of Agriculture Development Bank Ltd also fell 5.94% with shareholders offloading the commercial bank's shares after realizing its dividend. United Modi Hydropower Ltd saw its share price fall by 4.67%, while share prices of Oriental Hotel Ltd, Nepal Seva Laghubitta Bittiya Sanstha Ltd and Nepal Bank Ltd shed over 3% each.

As per ARKS technical analysis, the market formed a small bearish candlestick retracing further back from 1,175-1,180 point resistance range. Both Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) point toward possibility of further correction which may see the Nepse index fall to around 1,150 points. 

Nonetheless, traders can look out for a possible rebound around the aforementioned range for an opportunity to go long in the secondary market.

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)

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